Report on Reductions Achieved from Incentive-Based

Emission Reduction Measures in the San Joaquin Valley 

APPENDIX A.4: 2005 Carl Moyer Memorial Air Quality

Standards Attainment Program Guidelines Part IV

Release Date: September 22, 2014

Hearing Date: October 23, 2014

California Environmental Protection Agency 

Air Resources Board
THE CARL MOYER PROGRAM GUIDELINES 

PART IV 

APPENDICES 

Approved 

November 17, 2005
TABLE OF CONTENTS 

Appendix A – Acronyms

Appendix B – Tables for Emission Reduction and Cost-Effectiveness Calculations 

Appendix C – Cost-Effectiveness Calculation Methodology 

Appendix D – Example Calculations 

Appendix E – Description of Certification and Verification Executive Orders 

Appendix F – Retrofit Emission Control Strategies 

Appendix G – Description of Functional Equivalency of Non-Original Equipment 

Manufacturer Repowers and Rebuilt Engines for use in Repowers
APPENDIX A 

ACRONYMS 
A-1 ACRONYMS 

APPENDIX A 

ACRONYMS 

AAP Agricultural Assistance Program 

AB Assembly Bill 

ABT Average Banking and Trading 

AC Alternating Current 

AECP Alternative Emission Control Plan 

AESS Automatic Engine Start-Stop 

Ah Amp-hour 

APCD Air Pollution Control District 

APCO Air Pollution Control Officer 

APU Auxiliary Power Unit 

AQMD Air Quality Management District 

ARB California Air Resources Board 

ASM Acceleration Simulation Mode 

ATCM Airborne Toxic Control Measure 

ATE Advanced Travel Center Electrification 

AVL Automatic Vehicle Locator 

BACT Best Available Control Technology 

BAR Bureau of Automotive Repair 

bhp Brake Horsepower 

BNSF Burlington Northern and Santa Fe Railroad 

BTU British Thermal Unit 

C/E Cost Effectiveness 

CAF Confined Animal Facility 

CCR California Code of Regulations 

CI Compression Ignition 

CNG Compressed Natural Gas 

CO Carbon Monoxide 

COG Council of Governments 

CRF Capital Recovery Factor 

DC Direct Current 

DDHS Diesel Driven Heating System 

DECS Diesel Emission Control Strategy 

DMV Department of Motor Vehicles 

DOC Diesel Oxidation Catalyst 

DOE Department of Energy 

DPF Diesel Particulate Filter 

E/S Electric Standby 

ECF Energy Consumption Factor 

ECF Energy Consumption Factor 

EF Emission Factor 

EGR Exhaust Gas Recirculation 
A-2 ACRONYMS 

EMFAC ARB’s On-Road Motor Vehicle Emission Inventory Model 

EMU Electronic Monitoring Unit 

EO Executive Order 

EQIP Environmental Quality Incentives Program 

ERCs Emission Reduction Credits 

ES Emission Standards 

FBC Fuel-Borne Catalyst 

FCF Fuel Correction Factor 

FEL Family Emission Limit 

FTA Federal Transit Administration 

FTF Flow-Through Filter 

FY Fiscal Year 

g gram 

g/bhp-hr gram per brake horsepower-hour 

gal Gallon 

GPS Geographic Positioning System 

GSE Ground Support Equipment 

GTL Gas-to-Liquid 

GVWR Gross Vehicle Weight Rating 

HC Hydrocarbons 

HD Heavy-Duty 

HDDE Heavy-Duty Diesel Engine 

HDT Heavy-Duty Truck 

HDV Heavy-Duty Vehicle 

HEB Hybrid-Electric Bus 

HHDV Heavy Heavy-Duty Vehicle 

hp Horsepower 

hr Hour 

HSC California Health and Safety Code 

HVAC Heating, Ventilation and Air Conditioning 

IC Internal Combustion 

ICE Internal Combustion Engine 

ILD Idle Limiting Device 

IMO International Maritime Organization 

IPI Team Incentive Program Implementation Team 

IRS Internal Revenue Service 

ISO International Standards Organization 

kW Kilowatt 

lbs Pounds 

LETRU Low Emission Transport Refrigeration Unit 

LF Load Factor 

LHD Light Heavy-Duty 

LNG Liquefied Natural Gas 

LPG Liquefied Propane Gas 

LSI Large Spark Ignited 

MDO Marine Diesel Oil 
A-3 ACRONYMS 

MGO Marine Gas Oil 

MHDV Medium Heavy-Duty Vehicle 

mi Mile 

MOA Memorandum of Agreement 

MOU Memorandum of Understanding 

MV Fee Motor Vehicle Registration Fee 

MY Model Year 

NADA National Automotive Dealership Association 

NMHC Non-Methane Hydrocarbons 

NOFA Notice of Funds Available 

NOx Oxides of Nitrogen 

OBD II On-Road Diagnostics, Phase II 

OEM Original Equipment Manufacturer 

PAH Polycyclic Aromatic Hydrocarbons 

PEM Proton Exchange Membrane 

PG&E Pacific Gas and Electric 

PM Particulate Matter 

PM10 Inhalable Particulate Matter 

RFP Request for Proposals 

ROG Reactive Organic Gas 

RSD Remote Sensing Device 

SB Senate Bill 

SCAB South Coast Air Basin 

SCAQMD South Coast Air Quality Management District 

SCE Southern California Edison 

SCR Selective Catalytic Reduction 

SIP State Implementation Plan 

SMAQMD Sacramento Metropolitan Air Quality Management District 

SOF Soluble Organic Fraction 

SOFC Solid Oxide Fuel Cell 

SOP Statement of Principles 

SORE Small Off Road Engine 

STB Surface Transportation Board 

STD Standard 

SULEV Super Ultra Low Emission Vehicle 

SUV Sport-Utility Vehicle 

SWCV Solid Waste Collection Vehicle 

TAC Toxic Air Contaminant 

TFV Transit Fleet Vehicle 

THC Total Hydrocarbon 

TIP Transportation Implementation Plan 

tpd Tons Per Day 

TRU Transport Refrigeration Unit 

TSE Truck Stop Electrification 

U.S. EPA U.S. Environmental Protection Agency 

UB Urban Bus 
A-4 ACRONYMS 

ULETRU Ultra Low Emission Transport Refrigeration Unit 

ULEV Ultra Low Emission Vehicle 

UP Union Pacific Railroad 

V Volt 

VAVR Voluntary Accelerated Vehicle Retirement 

VIN Vehicle Identification Number 

VMT Vehicle Miles Traveled 

VOC Volatile Organic Compound 

VVR Voluntary Vehicle Repair 

yr Year 

ZEB Zero Emission Bus 
APPENDIX B 

TABLES FOR EMISSION REDUCTION AND 

COST-EFFECTIVENESS CALCULATIONS 
B-1 EMISSION REDUCTION TABLES 

APPENDIX B 

TABLES FOR EMISSION REDUCTION AND 

COST-EFFECTIVENESS CALCULATIONS 

This appendix presents tables summarizing the data needed to calculate the emission 

reductions and cost-effectiveness of potential projects. Included are data such as 

engine emission factors, load factors, and other conversion factors used in the 

calculations discussed in Appendix C: Cost-Effectiveness Calculation Methodology and 

Appendix D: Example Calculations. 

The emission factors in the tables reflect preliminary data on emission rates developed 

by ARB staff as part of a comprehensive effort to update the emissions models used for 

on-road motor vehicles and off-road mobile sources. These draft data were made 

available on ARB's website in early 2005, but are subject to change as staff completes 

its analyses and the associated model development. ARB staff will issue 

Carl Moyer Program Advisories to update the tables as necessary. 
B-2 EMISSION REDUCTION TABLES 

CRF FOR ALL PROJECTS 

Table B-1 

HEAVY-DUTY ON-ROAD VEHICLES 

Tables B-2 – B-8 

HEAVY-DUTY TRUCK IDLE REDUCTION 

Tables B-9 – B-10 

TRANSPORT REFRIGERATION UNITS 

Table B-11 

OFF-ROAD EQUIPMENT AND 

STATIONARY AND PORTABLE AGRICULTURAL ENGINES 

Tables B-12 – B-13 

LARGE SPARK IGNITION ENGINES 

Table B-14 

AIRPORT GROUND SUPPORT EQUIPMENT 

Table B-15 

LOCOMOTIVES 

Tables B-16 – B-17 

MARINE VESSELS 

Tables B-18 – B-23 

LIGHT-DUTY VEHICLES 

Table B-21 

REFERENCE 

Tables B-25 – B-28 
B-3 EMISSION REDUCTION TABLES 

ALL PROJECTS 

Table B-1 

Capital Recovery Factors (CRF) for Various Project Life 

At Four Percent Discount Rate 

Project Life CRF 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

0.360 

0.275 

0.225 

0.191 

0.167 

0.149 

0.134 

0.123 

0.114 

0.107 

0.100 

0.095 

0.090 

0.086 

0.082 

0.079 

0.076 

0.074 
B-4 EMISSION REDUCTION TABLES 

HEAVY-DUTY ON-ROAD VEHICLES 

Table B-2 

Heavy-Duty Engines 2004-2006 

Converted Emission Standards 

(g/bhp-hr) 

a – 2004-2006 emission standard for all on-road heavy duty engines except diesel urban buses. 

b – 2004-2006 optional emission standards for all on-road heavy duty engines except diesel 

urban buses. 

c – 2004-2006 emission standard for all on-road heavy duty engines except urban buses. 

d – 2004-2006 emission standard for all urban buses. 

e - Emission standards were converted where appropriate, using the NMHC and NOx fraction 

default values and the ultra low-sulfur diesel fuel correction factors listed in Appendix B, Tables 

B-22 and B-24, respectively 

Table B-3 

Heavy-Duty Alternative Fuel Engines 

Converted Emission Standards 

(g/bhp-hr) 

Model Year NOx PM10 

1988 – 1989 6.0 0.60 

1990 6.0 0.60 

1991 – 1993 5.0 0.25 

1994 – 1997 5.0 0.10 

1998 - September 2002 4.0 0.10 

October 2002 – 2006 2.0 0.10 

2007 1.2 0.01 

2010 0.2 0.01 

EO 

Certification 

Level 

Converted Emission Standards 

NOx + NMHC Diesel NOx(e) Diesel ROG(e) Alternative 

Fuel NOx 

2.5(a) 2.21 0.12 2.00 

1.8(b) 1.59 0.09 1.44 

1.5(b) 1.33 0.07 1.20 

1.2(b) 1.06 0.06 0.96 

0.9(b) 0.80 0.04 0.72 

0.6(b) 0.53 0.03 0.48 

0.3(b) 0.27 0.01 0.24 

PM10 Diesel PM10 Alternative 

Fuel PM10 

0.10(c) 0.072 0.100 

0.03(b) 0.022 0.030 

0.02(b) 0.014 0.020 

0.01(b,d) 0.007 0.010 
B-5 EMISSION REDUCTION TABLES 

Table B-4 

Medium Heavy-Duty Vehicles 14,001-33,000 lbs GVWR 

NOx, ROG, and PM10 Emission Factors 

(g/mile) (a)

Model Year NOx ROG PM10 

Pre-1984 

1984 – 1986 

1987 – 1990 

1991 – 1993 

1994 – 1997 

1998 – 2002 

2003+ 

2004 – 2006 

2007+ 

17.21 

16.65 

14.60 

12.18 

10.70 

9.77 

5.39 

5.12 

0.51 

0.29 

0.29 

0.18 

0.16 

0.10 

0.08 

0.08 

0.08 

0.02 

0.792 

0.720 

0.504 

0.288 

0.216 

0.144 

0.216 

0.216 

0.024 

a - Emission factors were converted using the ultra low-sulfur diesel fuel correction 

factors listed in table B-24. 

Table B-5 

Diesel Heavy Heavy-Duty Vehicles 33,000+ lbs GVWR 

NOx, ROG, and PM10 Emission Factors 

(g/mile) (a)

Model Year NOx ROG PM10 

Pre-1987 

1987 – 1990 

1991 – 1993 

1994 – 1997 

1998 – 2002 

2003 – 2006 

2007 – 2009 

2010+ 

21.39 

21.11 

18.23 

17.95 

17.58 

11.63 

6.36 

1.06 

1.04 

0.81 

0.54 

0.40 

0.51 

0.26 

0.23 

0.18 

1.249 

1.354 

0.562 

0.367 

0.403 

0.252 

0.028 

0.028 

a - Emission factors were converted using the ultra low-sulfur diesel fuel correction 

factors listed in table B-24. 
B-6 EMISSION REDUCTION TABLES 

Table B-6 

Diesel Urban Buses 

NOx, ROG, and PM10 Converted Emission Standards 

(g/bhp-hr) 

Model Year NOx ROG PM10 

1987 – 1990(a)

1991 – 1993(a)

1994 – 1995(a)

1996 – 2002(a)

2003(a,b)

2004 – 2006(c)

2007 – 2009 

2010 

5.58 

4.65 

4.65 

3.72 

2.21 

- 

1.20 

0.20 

1.17 

1.17 

1.17 

1.17 

0.12 

- 

0.19 

0.19 

0.432 

0.072 

0.050 

0.036 

0.007 

- 

0.010 

0.010

a - Emission standards were converted where appropriate, using the NMHC and NOx 

fraction default values and the ultra low-sulfur diesel fuel correction factors listed in 

Appendix B, Tables B-22 and B-24, respectively. 

b - NOx+NMHC emission standard converted to NOx and ROG. 

c - As of the date of publication, no diesel buses have been certified to the 0.5 g/bhp-hr 

2004-2006 model year emission standard. 

Table B-7 

Natural Gas Urban Buses 

NOx and PM10 Converted Emission Standards 

(g/bhp-hr) 

Model Year NOx PM10 

1991 – 1993 

1994 – 1995 

1996 – 1997 

1998 – 2002(b)

2003 – 2006(a,b,c)

2007 – 2009 

2010+ 

5.00 

5.00 

4.00 

2.50 

1.44 

1.20 

0.20 

0.100 

0.070 

0.050 

0.050 

0.020 

0.010 

0.010 

a - NOx+NMHC emission standard converted to NOx only. 

b - A majority of the natural gas urban buses have been certified to the optional 

standards. Therefore, these values are based on the optional standards. 

c - Many natural gas urban buses have been certified to optional standards below this 

level.
B-7 EMISSION REDUCTION TABLES 

Table B-8 

Conversion Factors for NOx, ROG and PM10 

Heavy-Duty Vehicle Projects 

(bhp-hr/mile) 

Model Year 

Medium HeavyDuty 

14,001-33,000 lbs. 

Heavy HeavyDuty 

33,000 lbs. + 

Urban Bus

33,000 lbs. 

+ 

Pre-1978 2.3 2.9 4.3 

1978 – 1981 2.3 2.8 4.3 

1982 – 1983 2.3 2.8 4.3 

1984 – 1990 2.3 2.7 4.3 

1991 – 1995 2.3 2.7 4.3 

1996+ 2.3 2.6 a 4.3 

a - 2.6 bhp-hr/mile is for all heavy-duty line haul trucks (class 8). 
B-8 EMISSION REDUCTION TABLES 

HEAVY-DUTY TRUCK IDLE REDUCTION 

Table B-9 

Heavy Heavy-Duty Vehicle Idling Emission Factors* 

(g/hr) 

Model Year NOx ROG PM10

Pre-1975 54.50 186.85 25.30

1975 – 1976 63.45 164.42 21.05

1977 – 1979 74.65 139.65 16.70

1980 – 1983 90.35 111.32 12.11

1984 – 1986 106.00 88.29 8.77 

1987 – 1989 121.50 70.42 6.34 

1991 – 1993 120.50 65.61 6.11 

1994 – 1997 136.00 52.26 4.43 

1998 164.50 37.77 2.62 

1999 – 2002 171.00 34.28 2.28 

2003 187.00 27.24 1.65 

2004 – 2006 191.50 25.56 1.50 

2007 – 2009 191.50 25.56 0.83 

2010+ 191.50 25.56 0.15 

*Factors are for truck idling at a RPM >800 

Table B-10 

Emission Factors for Small Off-Road Diesel Engines 

(g/bhp-hr) (a)

Horsepower Model Year NOx ROG PM10 

< 11 Pre-1995 9.30 1.26 0.720 

< 11 1995 – 1999 8.70 0.88 0.410 

< 11 2000 – 2004 5.76 0.57 0.376 

< 11 2005 – 2007 4.14 0.41 0.304 

< 11 2008 – 2020 4.14 0.41 0.152 

11 – <25 Pre-1995 6.44 1.54 0.550 

11 – <25 1995 – 1999 6.44 0.75 0.413 

11 – <25 2000 – 2004 5.49 0.54 0.306 

11 – <25 2005 – 2007 4.33 0.43 0.306 

11 – <25 2008 – 2020 4.33 0.43 0.152 

a - Emission factors were converted using the ultra low-sulfur diesel fuel correction factors listed in 

table B-25. 
B-9 EMISSION REDUCTION TABLES 

TRANSPORT REFRIGERATION UNITS

Table B-11 

TRU Engine Load Factors 

(Default Values) 

Horsepower Load Factor 

<25 0.64 

25 – 50 0.53 
B-10 EMISSION REDUCTION TABLES 

OFF-ROAD EQUIPMENT 

AND 

STATIONARY AND PORTABLE AGRICULTURAL ENGINES 

Table B-12 

Emission Factors for Off-Road 

Diesel Engines 

(g/bhp-hr) (a)

Horsepower Tier NOx ROG PM10 

25 – 49 Uncontrolled pre-1988 6.51 2.21 0.547 

 Uncontrolled 1988 + 6.42 2.17 0.547 

 1 5.26 1.74 0.480 

 2 4.63 0.29 0.280 

 4 Interim 4.55 0.12 0.128 

 4 Final 2.75 0.12 0.008 

50 – 74 Uncontrolled pre-1988 12.09 1.73 0.605 

 Uncontrolled 1988+ 8.14 1.19 0.497 

 1 6.54 1.19 0.552 

 2 4.75 0.23 0.192 

 3 2.74 0.12 0.192 

 4 Interim 2.74 0.12 0.064 

 4 Final 2.74 0.12 0.008 

75 – 99 Uncontrolled pre-1988 12.09 1.73 0.605 

 Uncontrolled 1988+ 8.14 1.19 0.497 

 1 6.54 1.19 0.552 

 2 4.75 0.23 0.192 

 3 2.74 0.12 0.192 

 4 Interim 2.15 0.11 0.008 

 4 Final 0.26 0.06 0.008 

100 – 174 Uncontrolled pre-1970 13.02 1.59 0.554 

 Uncontrolled 1970 – 1971 12.09 1.32 0.475 

 Uncontrolled 1972 – 1979 11.16 1.20 0.396 

 Uncontrolled 1980 – 1984 10.23 1.13 0.396 

 Uncontrolled 1985 – 1987 10.23 1.06 0.396 

 Uncontrolled post-1987 7.60 0.82 0.274 

 1 6.54 0.82 0.304 

 2 4.17 0.19 0.128 

 3 2.32 0.12 0.112 

 4 Interim 2.15 0.11 0.008 

 4 Final 0.26 0.06 0.008 

175 – 299 Uncontrolled pre-1970 13.02 1.52 0.554 

 Uncontrolled 1970 – 1971 12.09 1.26 0.475 

 Uncontrolled 1972 – 1979 11.16 1.14 0.396 

 Uncontrolled 1980 – 1984 10.23 1.08 0.396 
B-11 EMISSION REDUCTION TABLES 

a - Emission factors were converted using the ultra low-sulfur diesel fuel correction factors 

listed in table B-25. 

Horsepower Tier NOX ROG PM10 

 Uncontrolled 1985 – 1987 10.23 1.01 0.396 

 Uncontrolled post-1987 7.60 0.82 0.274 

 1 5.93 0.38 0.120 

 2 4.15 0.12 0.088 

 3 2.32 0.12 0.088 

 4 Interim 1.29 0.08 0.008 

 4 Final 0.26 0.06 0.008 

300 – 750 Uncontrolled pre- 1970 13.02 1.52 0.533 

 Uncontrolled 1970 – 1971 12.09 1.26 0.454 

 Uncontrolled 1972 – 1979 11.16 1.14 0.382 

 Uncontrolled 1980 – 1984 10.23 1.08 0.382 

 Uncontrolled 1985 – 1987 10.23 1.01 0.382 

 Uncontrolled post- 1987 7.60 0.82 0.274 

 1 5.93 0.38 0.120 

 2 3.79 0.12 0.088 

 3 2.32 0.12 0.088 

 4 Interim 1.29 0.08 0.008 

 4 Final 0.26 0.06 0.008 

>750 Uncontrolled pre- 1970 13.02 1.52 0.533 

 Uncontrolled 1970 – 1971 12.09 1.26 0.454 

 Uncontrolled 1972 – 1979 11.16 1.14 0.382 

 Uncontrolled 1980 – 1984 10.23 1.08 0.382 

 Uncontrolled 1985 – 1987 10.23 1.01 0.382 

 Uncontrolled post- 1987 7.60 0.82 0.274 

 1 5.93 0.38 0.120 

 2 3.87 0.12 0.088 

 4 Interim 2.24 0.12 0.048 

 4 Final 2.24 0.06 0.016 
B-12 EMISSION REDUCTION TABLES 

Table B-13 

Default Load Factors for Off-Road Heavy-Duty Diesel Engines 

Category Equipment Type Load Factor 

Agriculture Agricultural Mowers 0.43 

Agricultural Tractors 0.70 

Balers 0.58 

Combines 0.70 

Hydro Power Units 0.48 

Sprayers 0.50 

Swathers 0.55 

Tillers 0.78 

Other Agricultural Equipment 0.51 

Construction Cranes 0.43 

 Crawler Tractors 0.64 

 Crushing/Processing 0.78 

 Excavators 0.57 

 Graders 0.61 

 Off-Highway Tractors 0.65 

 Off-Highway Trucks 0.57 

 Pavers 0.62 

 Other Paving Equipment 0.53 

 Rollers 0.56 

 Rubber-Tired Dozers 0.59 

 Rubber-Tired Loaders 0.54 

 Scrapers 0.72 

 Signal Boards 0.78 

 Skid Steer Loaders 0.55 

 Surfacing Equipment 0.45 

 Tractors/Loaders/Backhoes 0.55 

 Trenchers 0.75 

 Other Construction Equipment 0.62 

Cargo Handling Container Handling Equipment 0.59 

 Cranes 0.43 

 Excavators 0.57 

 Forklifts 0.30 

 Other, 

General Industrial Equipment 

0.51 

 Sweeper/Scrubber 0.68 

 Tractors/Loaders/Backhoes 0.55 

 Yard Trucks 0.65 

Stationary and Portable 

Agricultural Engines Stationary Irrigation Pump 0.65 

 Portable Irrigation Pump 0.65 

 Other 0.51 

Other All 0.43 
B-13 EMISSION REDUCTION TABLES 

LARGE SPARK IGNITION ENGINES 

Table B-14a 

Emission Factors for Off-Road LSI Engines by Model Year 

(g/bhp-hr) 

Horsepower Fuel Model Year NOx ROG PM10 

25 – 49 Gasoline Uncontrolled 

– all years 8.01 3.81 0.060 

 2001 6.91 3.00 0.060 

 2002 5.52 2.37 0.060 

 2003 4.52 1.64 0.060 

 2004 – 2006 1.33 0.72 0.060 

 2007 – 2009 0.89 0.48 0.060 

 2010+ 0.27 0.14 0.060 

 Alt Fuel Uncontrolled 

– all years 13.00 1.25 0.060 

 2001 10.40 1.05 0.060 

 2002 7.79 0.84 0.060 

 2003 5.19 0.64 0.060 

 2004 – 2006 1.95 0.13 0.060 

 2007 – 2009 1.30 0.08 0.060 

 2010+ 0.39 0.03 0.060 

50 – 120 Gasoline Uncontrolled 

– all years 11.84 2.66 0.060 

 2001 9.58 2.11 0.060 

 2002 7.32 1.56 0.060 

 2003 5.06 1.00 0.060 

 2004 – 2006 1.78 0.26 0.060 

 2007 – 2009 1.19 0.18 0.060 

 2010+ 0.36 0.05 0.060 

 Alt Fuel Uncontrolled 

– all years 10.51 1.40 0.060 

 2001 8.54 1.16 0.060 

 2002 6.56 0.92 0.060 

 2003 4.57 0.68 0.060 

 2004 – 2006 1.58 0.14 0.060 

 2007 – 2009 1.05 0.10 0.060 

 2010+ 0.32 0.03 0.060 

>120 Gasoline Uncontrolled 

– all years 12.94 1.63 0.060 

 2001 10.29 1.35 0.060 

 2002 7.64 1.07 0.060 

 2003 4.98 0.79 0.060 

 2004 – 2006 1.94 0.16 0.060 
B-14 EMISSION REDUCTION TABLES 

Horsepower Fuel Model Year NOx ROG PM10 

 2007 – 2009 1.29 0.11 0.060 

 2010+ 0.39 0.03 0.060 

 Alt Fuel Uncontrolled 

– all years 10.51 1.25 0.060 

 2001 8.53 1.05 0.060 

 2002 6.54 0.85 0.060 

 2003 4.56 0.64 0.060 

 2004 – 2006 1.58 0.13 0.060 

 2007 – 2009 1.05 0.08 0.060 

 2010+ 0.32 0.03 0.060 

LARGE SPARK IGNITION ENGINES 

Table B-14b 

Off-Road Equipment Default Load Factors 

Equipment Load Factor 

Agricultural LSI 

Agricultural Tractors 0.62 

Balers and other Ag Equip. 0.55 

Sprayers 0.50 

Stationary and Portable 

Engines 0.65 

Swathers 0.52 

Construction 

Asphalt Pavers 0.66 

Bore/Drill Rigs 0.80 

Paving Equipment 0.60 

Rollers 0.60 

Rough Terrain Forklifts 0.60 

Rubber Tired Loaders 0.55 

Skid Steer Loaders 0.60 

Trenchers 0.65 

Lawn and Turf 

Turf Equipment 0.60 

Light Commercial 

Forklift 0.30 

Other Industrial Equip. 0.50 
B-15 EMISSION REDUCTION TABLES 

AIRPORT GROUND SUPPORT EQUIPMENT 

Table B-15 

Default Load Factors for LSI and Diesel Equipment 

Equipment Load Factor 

Belt Loader 0.50 

Baggage Tug 0.55 

Cargo Loaders 0.50 

A/C Tugs wide body 0.80 

A/C Tugs narrow body 0.80 

Lifts 0.50 

Ground Power Units 0.75 

Forklift 0.30 
B-16 EMISSION REDUCTION TABLES 

LOCOMOTIVES 

Table B-16 

Locomotive Emission Factorsa

(g/bhp-hr) 

Engine Model Year Type NOx ROGb PM10b

Pre-1973 

(Uncontrolled) Line-haul 11.70 0.47 0.288 

 Switcher 15.66 0.99 0.396 

1973-2001 (Tier 0) Line-haul 7.74 0.47 0.288 

 Switcher 11.34 0.99 0.396 

2002-2004 (Tier 1) Line-haul 6.03 0.47 0.288 

 Switcher 8.91 0.99 0.396 

2005 and later (Tier 2) Line-haul 4.50 0.26 0.153 

 Switcher 6.57 0.51 0.189 

a - Emission factors from U.S. EPA Technical Highlights - Emission Factors for 

Locomotives, December 1997, with fuel correction factors (FCF) applied. NOx and 

PM10 FCFs for all Carl Moyer Program categories is 0.9. 

b - HC and PM standards are less stringent than actual emission rates. Emission 

factors reflect actual emission rates per U.S. EPA document cited above. 

Table B-17 

Locomotive Idle-Limiting Device Factors 

Type Factor 

Switchers 0.90 

Line-Haul 0.97 

Passenger 0.97 

Note: Factors based on assumption ILD reduces locomotive 

engine idling by 50 percent. 
B-17 EMISSION REDUCTION TABLES 

MARINE VESSELS 

Table B-18 

Harbor Craft Propulsion and Auxiliary Engine Emission Factors 

(g/bhp-hr) 

Horsepower Year NOx ROG PM10 

 pre-1988 12.09 1.73 0.605 

1988 - 2004 8.14 1.19 0.497 

50 – 99 

2005+ 4.22 0.54 0.320 

pre-1970 13.02 1.59 0.554 

1970 - 1971 12.09 1.32 0.475 

1972 - 1979 11.16 1.20 0.396 

 1980 - 1984 10.23 1.13 0.396 

1985 - 1987 10.23 1.06 0.396 

 1988 - 2003 7.60 0.82 0.274 

100 – 174 

2004+ 4.17 0.39 0.240a

pre-1970 13.02 1.52 0.554 

1970 - 1971 12.09 1.26 0.475 

1972 - 1979 11.16 1.14 0.396 

1980 - 1984 10.23 1.08 0.396 

1985 - 1987 10.23 1.01 0.396 

1988 - 2003 7.60 0.82 0.274 

175 – 299 

2004+ 4.17 0.39 0.160b

pre-1970 13.02 1.52 0.533 

 1970 - 1971 12.09 1.26 0.454 

 1972 - 1979 11.16 1.14 0.382 

 1980 - 1984 10.23 1.08 0.382 

1985 - 1987 10.23 1.01 0.382 

1988 - 2003 7.60 0.82 0.274 

300 – 750 

2004+ 4.17 0.39 0.160 

pre-1970 13.02 1.52 0.533 

1970 - 1971 12.09 1.26 0.454 

1972 - 1979 11.16 1.14 0.382 

 1980 - 1984 10.23 1.08 0.382 

1985 - 1987 10.23 1.01 0.382 

 1988 - 2006 7.60 0.82 0.274 

2007+ 

(1.2 < D < 5.0c) 

4.17 0.39 0.160 

2007+ 

(5 < D < 15c

) 

4.60 0.44 0.216 

2007+ 

(15 < D < 20c

) 

5.03 0.48 0.400 

2007+ 

(20 < D < 25c

) 

5.77 0.54 0.400 

>750 

2007+ 

(25 < D < 30c

) 

6.35 0.59 0.400 

a - If engine displacement < 0.9 liters/cyl, PM10 = 0.320 g/bhp-hr; If engine displacement >1.2 liters/cyl.,PM10 =0.160 g/bhp-hr. 

b – If engine displacement < 1.2 liters/cyl., PM10 = 0.24 g/bhp-hr. 

c – Engine displacement in liters per cylinder. 
B-18 EMISSION REDUCTION TABLES 

Table B-19 

Harbor Craft Load Factors 

Engine Vessel Type Factor 

Commercial 

Fishing 

0.27 

Charter Fishing 0.52 

Ferry/Excursion 0.76 

Crew & Supply 0.45 

Pilot 0.51 

Tow 0.68 

Tug 0.50 

Work 0.45 

Propulsion 

Other 0.52 

Tug 0.31 Auxiliary Other 0.43 

Table B-20 

Harbor Craft 

Fuel Consumption Rate Factors 

(bhp-hr/gal) 

Engine Displacement Fuel Consumption Rate

< 5 liters/cylinder 18.5 

> 5 liters/cylinder 20.8 
B-19 EMISSION REDUCTION TABLES 

LIGHT-DUTY VEHICLES 

Table B-21 

Voluntary Accelerated Light-Duty Vehicle Retirement Program 

Emission Reductions for Calendar Year 2006* 

Total Pounds Per Vehicle Over 3 Year Credit Life 

 Emission Reductions (pounds) – 3 Year Credit Life 

Model Year NOx ROG** CO PM10 

65 and earlier 151 496 2,757 0.68 

66 145 471 2,552 0.67 

67 148 477 2,611 0.65 

68 156 492 2,731 0.81 

69 162 504 2,841 0.56 

70 169 438 2,971 0.99 

71 172 449 2,990 0.95 

72 177 458 3,037 0.83 

73 180 469 3,082 0.64 

74 159 401 2,859 1.20 

75 145 345 2,861 1.17 

76 130 222 2,673 1.04 

77 108 183 2,546 1.13 

78 107 186 2,493 1.10 

79 95 168 1,625 0.90 

80 85 129 1,373 1.13 

81 62 108 1,092 1.22 

82 66 101 1,085 1.36 

83 73 85 934 1.22 

84 73 74 883 1.05 

85 69 59 575 0.89 

86 71 61 527 0.91 

87 67 71 468 0.92 

88 67 65 430 0.85 

89 50 46 492 0.84 

90 38 45 529 0.81 

91 38 42 514 0.76 

92 40 41 510 0.71 

93 35 31 279 0.64 

94 19 17 21 0.54 

* Table is repeated in the Light-Duty Vehicle Chapter, Table 11-2 

** Includes exhaust and evaporative emissions 

Source: EMFAC2002, Version 2.2, statewide, annual average. Assumes average 1965 

through 2006 vehicle as replacement vehicle for vehicles retired in calendar year 2006. 

This table updates the emission reductions provided in ARB’s VAVR regulation 

consistent with the methodology in the staff report, Proposed Regulations for Voluntary 

Accelerated Light-Duty Vehicle Retirement Enterprises, released October 23, 1998, and 

approved by ARB on December 10, 1998. 
B-20 EMISSION REDUCTION TABLES 

REFERENCES

The information in these tables has already been incorporated into the preceding 

emission factor tables. These tables are included for informational purposes. 

Table B-22 

NOx and NMHC Fraction Default Values 

For All Engines Except TRUs 

Diesel Engines Alternative Fuel Engines

NOx NMHC NOx NMHC 

0.95 0.05 0.80 0.20 

Table B-23 

NOx and NMHC Fractions for TRUs 

 

Horsepower Model Year NOx NMHC 

< 25 All 0.80 0.20 

25 – 50 2004 and earlier 0.80 0.20 

25 – 50 2005 to 2008 0.90 0.10 

25 – 50 2008 and later 0.95 0.05 

Table B-24 

Fuel Correction Factors for On-Road Diesel Engines 

Model Year NOx PM10 HC 

Pre- 2007 

2007+ 

0.93 

0.93 

0.72 

0.80 

0.72

0.72
B-21 EMISSION REDUCTION TABLES 

Table B-25 

Fuel Correction Factors for Off-Road Diesel Engines 

Model 

Year 

NOx PM10

Pre-Tier 1 0.930 0.720 

Tier 1+ 0.948 0.800 
APPENDIX C 

COST-EFFECTIVENESS CALCULATION METHODOLOGY
C-1 COST-EFFECTIVENESS 

APPENDIX C 

COST-EFFECTIVENESS CALCULATION METHODOLOGY 

I. Introduction 

To receive Carl Moyer Program funding, each project must meet the maximum costeffectiveness limit of $14,300 per weighted ton of surplus NOx, ROG, and PM10 (PM10 

means combustion PM) emissions reduced. Only Carl Moyer Program funding, funding 

under the district’s fiduciary budget authority, or funding provided by a port authority (to 

meet the match fund requirement) are included in determining the cost-effectiveness of 

surplus emission reductions. For more details see Part 1, Chapter 2: Administration of 

the Carl Moyer Program. 

II. General Cost-Effectiveness Calculations 

The cost-effectiveness of a project is determined by dividing the annual cost of the 

potential project by the annual weighted surplus emission reductions that will be 

achieved by the project as shown in formula C-1 below. 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton): 

Annualized Cost ($/yr) 

Annual Weighted Surplus Emission Reductions (tons/yr) 

Descriptions on how to calculate annual emission reductions and annualized cost are 

provided in the following sections. 

A. Calculating the Annual Weighted Surplus Emission Reductions 

Annual weighted emission reductions are estimated by taking the sum of the project’s 

annual surplus pollutant reductions following formula C-2 below. This will allow projects 

that reduce one, two, or all three of the covered pollutants to be evaluated for eligibility 

to receive Carl Moyer Program funding. While NOx and ROG emissions are given 

equal weight; emissions of combustion PM10 (such as diesel exhaust PM10 emissions) 

have been identified as a toxic air contaminant and thus carry a greater weight in the 

calculation. 

Formula C-2: Annual Weighted Surplus Emission Reductions: 

NOx reductions (tons/yr) + ROG reductions (tons/yr) + [20 * (PM10 reductions (tons/yr)] 

The result of formula C-2 is used to complete formula C-1 to determine the 

cost-effectiveness of surplus emission reductions. 
C-2 COST-EFFECTIVENESS 

In order to determine the annual surplus emission reductions by pollutant, formula C-3 

below must be completed for each pollutant (NOx, ROG, and PM10), for the baseline 

technology and the reduced technology, totaling up to 6 calculations: 

1. Annual emissions of NOx for the baseline technology 

2. Annual emissions of NOx for the reduced technology 

3. Annual emissions of ROG for the baseline technology 

4. Annual emissions of ROG for the reduced technology 

5. Annual emissions of PM10 for the baseline technology 

6. Annual emissions of PM10 for the reduced technology 

These calculations are completed for each pollutant by multiplying the engine emission 

factor or converted emission standard by the annual activity level and by other 

adjustment factors as specified for the calculation methodologies presented. 

The baseline technology is the technology applied under normal business practices, 

such as, an engine certified by ARB to the current emission standards for new 

purchases; or the existing engine in a vehicle or equipment for repowers and retrofits. 

The reduced technology is the newer technology used by the applicant to obtain 

surplus emission reductions. The newer technology may be one of the following: 

• For a new purchase it would be the engine certified by ARB to reduce NOx 

emissions by at least 30 percent less than the current NOx emission standard, or 

certified by ARB to the optional NOx or NOx+NMHC emission standard. Locomotive 

and marine vessel new purchases have slightly different criteria. Please see the 

specific source category cost-effectiveness criteria for more information. 

• For a repower it would be the replacement engine certified by ARB (for locomotives 

and marine vessels it would be EPA verified) to a minimum of 15 percent less than 

the NOx emissions from the baseline technology (existing engine). 

• For a NOx retrofit it would be an ARB-verified retrofit technology that will reduce 

NOx emissions by a minimum of 15 percent from the NOx emissions of the baseline 

technology. 

• For a PM retrofit it would be the ARB-verified diesel emission control strategy 

(DECS) that reduces PM emissions as level 1 (25 percent reduction), level 2 

(50 percent reduction), or level 3 (85 percent reduction). 

Since the emission factor or converted standard is given in units of grams, a conversion 

from grams to tons is also required, as described in formula C-3 below. 

Formula C-3: Estimated Annual Emissions by Pollutant (tons/yr):

Emission Factor or Converted Emission Standard (g/bhp-hr) * Annual Activity * 

Adjustment Factor(s) * Percent Operation in CA * ton/907,200g 
C-3 COST-EFFECTIVENESS 

The Carl Moyer Program allows the emissions reductions from a project to be 

calculated using the following activity factors on an annual basis: 

• Hours of operation, 

• Fuel consumption, or 

• Miles traveled. 

Specific activity factors allowed for each project category may differ and are identified in 

the source category chapters of the Carl Moyer Program Guidelines. 

1. Calculating Annual Emissions Based on Hours of Operation 

When actual annual hours of equipment operation are the basis for determining 

emission reductions, the equipment activity level must be based on a properly 

functioning hour meter. (See Part 1, Program Overview and Administrative 

Requirements, Chapter 2 Administration of the Carl Moyer Program, section VII and the 

relative source category chapter for additional information on this topic). In addition, the 

horsepower rating of the engine and an engine load factor found in Appendix B must be 

used. A default load factor of 0.43 is used for those projects where no specific 

equipment load factor is available in Appendix B. The method for calculating emission 

reductions based on hours of operation is described in formula C-4 below. 

Formula C-4: Estimated Annual Emissions based on hours of Operation (tons/yr): 

Emission Factor or Converted Emission Standard (g/bhp-hr) * Horsepower * 

Load Factor * Activity (hrs/yr) * Percent Operation in CA * ton/907,200g

The engine load factor is an indicator of the nominal amount of work done by the engine 

for a particular application. It is given as a fraction of the rated horsepower of the 

engine and varies with engine application. For projects in which the horsepower of the 

baseline technology and reduced technology are different by more than 25 percent, the 

load factor must be adjusted following formula C-5 below. It is important to understand 

the replacement load factor must never exceed 100 percent in cases where the reduced 

technology engine is significantly smaller than the baseline technology engine. 

Formula C-5: Replacement Load Factor: 

Load Factor baseline * hp baseline/hp reduced 

2. Calculating Annual Emissions Based on Fuel Consumption 

When annual fuel consumption is used for determining emission reductions, the 

equipment activity level must be based on annual fuel usage within California provided 

by the applicant. Fuel records must be maintained by the engine owner as described in 

Part 1, Chapter 2: Administration of the Carl Moyer Program, section VII.
C-4 COST-EFFECTIVENESS 

An energy consumption factor (ECF) must be used to convert emissions given in 

g/bhp-hr to units of grams of emissions per gallon of fuel used (g/gal). The ECF is a 

number that combines the effects of engine efficiency and the energy content of the fuel 

used in that engine into an approximation of the amount of work output by an engine for 

each unit of fuel consumed. Formula C-6 below is the formula for calculating annual 

emissions based on annual fuel consumed.

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr): 

Emission Factor or Converted Emission Standard (g/bhp-hr) * ECF (hp-hr/gal) * 

Activity (gal/yr) * Percent Operation in CA * ton/907,200g

For on-road projects, if the emission factor is in g/mile, a unit conversion factor 

(bhp-hr/mile) found in Table B-8 in Appendix B must be used to convert from g/mile to 

g/bhp-hr. This is completed by dividing the emission factor (g/mile) by the conversion 

factor (bhp-hr/mile) resulting in (g/bhp-hr). Formula C-7 below is used to calculate 

annual emissions for fuel based on-road calculations. 

Formula C-7: Estimated Annual Emissions based on Fuel Consumed using On-Road 

Emission Factors (tons/yr): 

[On-Road Emission Factor (g/mile)/Unit Conversion Factor (bhp-hr/mile)] * 

ECF (hp-hr/gal) * Activity (gal/yr) * Percent Operation in CA * ton/907,200g

3. Calculating Annual Emissions Based on Annual Miles Traveled 

Calculations based on annual miles traveled are only used for on-road projects. 

Mileage records must be maintained by the engine owner as described in Part 1, 

Chapter 2: Administration of the Carl Moyer Program, section VII, and the relative 

source category chapter. 

Calculations Using Emission Factors: There is no conversion since the emission 

factors for on-road projects provided are given in units of g/mile. Formula C-8 

describes the method for calculating pollutant emissions based on emission 

factors and miles traveled. 

Formula C-8: Estimated Annual Emissions based on Mileage using Emission Factors 

(tons/yr): 

Emission Factor (g/mile) * Activity (miles/yr) * Percent Operation in CA * ton/907,200g 

Calculating Annual Emissions Based on Converted Standards: The unit 

conversion factor found in Table B-8 in Appendix B is used to convert the units of 

the converted emission standard (g/bhp-hr) to g/mile. Formula C-9 describes the 

method for calculating pollutant emissions using converted emission standards. 
C-5 COST-EFFECTIVENESS 

Formula C-9: Estimated Annual Emissions based on Mileage using Converted Emission 

Standards (tons/yr): 

Converted Emission Standard (g/bhp-hr) * Unit Conversion (bhp-hr/mile) * Activity (miles/yr) 

* Percent Operation in CA * ton/907,200g 

4. Calculating Annual Surplus Emission Reductions by Pollutant 

The final step in this portion of the calculations is to determine the annual surplus 

emission reductions by pollutant. For new purchases and repower projects, subtract the 

annual emissions for the reduced technology from the annual emissions for the baseline 

technology following formula C-10 below. 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Repowers 

and New Purchases: 

Annual Emissions for the Baseline Technology – 

Annual Emissions for the Reduced Technology

For retrofits, multiply the baseline technology pollutant emissions by the percent of 

emission reductions that the ARB-verified reduced technology is verified to following 

formula C-11 below. 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Retrofits: 

Annual Emissions for the Baseline Technology * 

Reduced Technology Verification Percent 

Calculations must be done for each pollutant, NOx, PM10, and ROG, giving a total of 

three calculations. 

For a repower + retrofit calculation the baseline to be used for the retrofit portion of the 

calculation will be the repower’s reduced technology emissions. For fleet modernization 

projects the baseline will be the newer vehicle emissions. 

The annual surplus emission reductions by pollutant would be used in Formula C-2 to 

calculate the annual surplus emission reductions. 

B. Determining the Annualized Cost 

Annualized cost is the amortization of the one-time incentive grant amount for the life of 

the project to yield an estimated annual cost. The annualized cost is calculated by 

multiplying the incremental cost by the capital recovery factor (CRF). The resulting 

annualized cost is used to complete formula C-12 to determine the cost-effectiveness of 

surplus emission reductions. 
C-6 COST-EFFECTIVENESS 

Formula C-12: Annualized Cost ($): 

CRF * incremental cost ($) 

1. Calculating the CRF 

The CRF is the level of earnings reasonably expected by investing state funds in 

various financial instruments over the length of a Carl Moyer Program project. 

The CRF uses an interest rate and project life to determine the rate at which earnings 

could reasonably be expected if the same funds were invested over a length of time 

equaling the project life. The CRF is calculated following formula C-13 below. 

Formula C-13: Capitol Recovery Factor (CRF): 

[(1 + i)n (i)] / [(1 + i)n - 1] 

Where 

i = discount rate (4 percent) 

n = project life (at least 3 years see specific project criteria for default maximums) 

The discount rate of 4 percent reflects the prevailing earning potential for state funds 

that could reasonably be expected by investing state funds in various financial 

instruments over the length of the minimum project life of Carl Moyer Program projects. 

Table B-1 in Appendix B lists the CRF for various project lives using a discount rate of 

4 percent. Use the result from formula C-13 to complete formula C-12 to determine the 

annualized cost of a project. 

2. Calculating the Incremental Cost 

The incremental cost is determined by subtracting the cost of the baseline technology 

from the cost of the reduced technology, as described in formula C-14 below. 

Formula C-14: Incremental Cost ($): 

Cost of Reduced Technology ($) – Cost of Baseline Technology ($)

Generally the cost of the baseline technology for a new purchase is the price of a new 

piece of equipment meeting the current emission standards. The cost of the baseline 

technology for a repower is the cost of rebuilding the existing engine. For retrofits, there 

is no baseline technology cost; hence the entire cost of the retrofit is eligible for funding. 
C-7 COST-EFFECTIVENESS 

For fleet modernization projects, the incremental cost is determined by adjusting the 

value given to the vehicle by the National Automotive Dealership Association 

(N.A.D.A.), as described in formula C-15 below. 

Formula C-15: Incremental Cost for Fleet Modernization Projects ($): 

When the replacement vehicle is not new: 

N.A.D.A value 

where the N.A.D.A value is the retail value of the used vehicle * 72 percent. 

When the replacement vehicle is new: 

Invoice of the New Vehicle * 80 percent 

Use the results from formula C-14 or C-15 to complete formula C-12 to determine the 

annualized cost of a project. 
C-8 COST-EFFECTIVENESS 

III. List of Formulas 

For an easy reference, the necessary formulas to calculate the cost-effectiveness of 

surplus emission reductions for a project funded through the Carl Moyer Program are 

provided below. 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton): 

Annualized Cost ($/yr) 

Annual Weighted Surplus Emission Reductions (tons/yr) 

Formula C-2: Annual Weighted Surplus Emission Reductions: 

NOx reductions (tons/yr) + ROG reductions (tons/yr) + [20 * PM10 reductions (tons/yr)] 

Formula C-3: Estimated Annual Emissions by Pollutant (tons/yr): 

Emission Factor or Converted Emission Standard (g/bhp-hr) * Annual Activity * 

Adjustment Factor(s) * Percent Operation in CA* (ton/907,200g) 

Formula C-4: Estimated Annual Emissions based on hours of Operation (tons/yr): 

Emission Factor or Converted Emission Standard (g/bhp-hr) * Horsepower * 

Load Factor * Activity (hrs/yr) * Percent Operation in CA * ton/907,200g 

Formula C-5: Replacement Load Factor: 

Load Factor baseline * hp baseline/hp reduced

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr): 

Emission Factor or Converted Emission Standard (g/bhp-hr) * ECF (hp-hr/gal) * 

Activity (gal/yr) * Percent Operation in CA * ton/907,200g 

Formula C-7: Estimated Annual Emissions based on Fuel Consumed using On-Road 

Emission Factors (tons/yr): 

[On-Road Emission Factor (g/mile)/Unit Conversion Factor (bhp-hr/mile)] * 

ECF (hp-hr/gal) * Activity (gal/yr) * Percent Operation in CA * ton/907,200g 

Formula C-8: Estimated Annual Emissions based on Mileage using Emission Factors 

(tons/yr): 

Emission Factor (g/mile) * Activity (miles/yr) * Percent Operation in CA * ton/907,200g 
C-9 COST-EFFECTIVENESS 

Formula C-9: Estimated Annual Emissions based on Mileage using Converted Emission 

Standards (tons/yr): 

Converted Emission Standard (g/bhp-hr) * Unit Conversion Factor (bhp-hr/mile) * 

Activity (miles/yr) * Percent Operation in CA * ton/907,200g 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Repowers 

and New Purchases: 

Annual Emissions for the Baseline Technology – 

Annual Emissions for the Reduced Technology 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Retrofits: 

Annual Emissions for the Baseline Technology * 

Reduced Technology Verification Percent 

Formula C-12: Annualized Cost ($): 

CRF * incremental cost ($) 

Formula C-13: Capitol Recovery Factor (CRF): 

[(1 + i)n (i)] / [(1 + i)n - 1] 

Where i = discount rate (4 percent) and n = project life (at least 3 years see 

specific project criteria for default maximums) 

Formula C-14: Incremental Cost ($): 

Cost of Reduced Technology ($) – Cost of Baseline Technology ($) 

Formula C-15: Incremental Cost for Fleet Modernization Projects ($): 

When the replacement vehicle is not new: 

 N.A.D.A value 

where the N.A.D.A value is the retail value of the used vehicle * 72 percent. 

When the replacement vehicle is new: 

 Invoice of the New Vehicle * 80 percent 
APPENDIX D 

EXAMPLE CALCULATIONS 
D-1 EXAMPLE CALCULATIONS 

APPENDIX D 

EXAMPLE CALCULATIONS 

TABLE OF CONTENTS 

I. On-Road Heavy-Duty Vehicles 

II. On-Road Heavy-Duty Fleet Modernization 

III. Heavy-Duty Truck Idle Reduction 

IV. Transport Refrigeration Units 

V. Off-Road Compression Ignition Equipment 

VI. Large Spark-Ignition Off-Road Equipment (pending Board action) 

VII. Ground Support Equipment (pending Board action) 

VIII. Locomotives 

IX. Marine Vessels 

X. Agricultural Sources 

XI. Light-Duty Vehicles 

XII. Zero-Emission Technologies 
D-2 EXAMPLE CALCULATIONS 

I. On-Road Heavy-Duty Vehicles 

This section provides several examples of calculations for determining the 

cost-effectiveness of surplus emission reductions for on-road projects. 

A. General Criteria for On-Road Cost-Effectiveness Calculations 

• Funded projects must have a minimum project life of 3 years. Project life is the 

number of years that a Carl Moyer Program project will operate in California under 

the conditions specified in the grant funding agreement. 

• The default project life for on-road projects are as follows: 

School buses > 33,000 GVWR - New 20 years 

Buses > 33,000 GVWR - New 12 years 

Other On-Road - New 10 years 

Repowers + Retrofits 5 years 

Retrofits 5 years 

Applicants must provide documentation to justify a longer project life. 

• Only the minimum verified levels of NOx and PM10 emission reductions will be used 

to calculate cost-effectiveness for retrofit projects. 

• In these calculations, PM10 refers to combustion particulate matter. 

• ROG reductions cannot be counted in projects where the new engine or retrofit 

device are not verified or certified for ROG. 

• When the model year of the vehicle chassis and the model year of the existing 

engine are different, the newer of the two model years, either the vehicle or the 

engine, shall be used to determine the baseline emissions for calculations. 

• When calculating the baseline emissions for a glider kit repower project, the baseline 

for the project is the chassis year or the old engine model year, whichever is newer. 

• The incremental emission difference between the lower FEL level to the required 

emission standard cannot be used for the purpose of calculating Carl Moyer 

Program emission benefits. The maximum amount of emission reduction that can 

be claimed is the difference between the applicable required emission standard for 

the replacement engine (not the FEL level) and the baseline emission level of the 

existing engines. 

• Most on-road calculations will be based on mileage. Refuse haulers and street 

sweepers may have fuel based calculations if fuel receipts can be provided to 

document previous usage. Other vehicles may also use fuel based calculations on a 

case-by-case basis. 
D-3 EXAMPLE CALCULATIONS 

• Refuse vehicles and street sweepers often have two engines, one for motive power 

and one for auxiliary operations. Emission benefits are calculated individually for 

each engine using fuel consumption rates for each unit if available. If individual 

engine fuel consumption information is not available, the applicant must provide and 

document an estimate for the typical activities of each engine based on best 

engineering judgment so that emissions can be determined. Factors such as fuel 

economy, typical operating loads, and hours of operation for each engine must be 

provided. 

• Table D-1 provides the source of emission factors to be used in on-road 

cost-effectiveness calculations. 

Table D-1 

On-Road Heavy-Duty Vehicle Calculations 

Source of Emission Factors 

New Repower Retrofit 

Vehicle 

Type 

Baseline 

Factor 

Reduced 

Factor 

Baseline 

Factor 

Reduced 

Factor 

Baseline 

Factor 

Reduced 

Factor 

Medium 

Heavy 

Duty 

Vehicle 

B-4 B-2 or B-3 B-3 or B-4 B-3 or B-4 B-4 

% verified as 

shown on 

Executive 

Order 

Heavy 

Duty 

Vehicle 

B-5 B-2 or B-3 B-3 or B-5 B-3 or B-5 B-5 

% verified as 

shown on 

Executive 

Order 

Urban Bus 

(Alternative 

Fuel) 

B-2 or B-7 B-2 or B-3 B-7 B-7 B-7 

% verified as 

shown on 

Executive 

Order 

Urban Bus 

(Diesel) B-2 or B-6 B-2 or B-3 B-6 B-6 or B-7 B-6 

% verified as 

shown on 

Executive 

Order 

• The energy consumption factor to be used for all on-road fuel based calculations is 

18.5 bhp/hr-gal. 

• The baseline cost for retrofit projects is zero ($0). The full cost of a retrofit is 

potentially eligible for funding. 

• For retrofit projects that only take credit for NOx reductions from a Level 3 DECS 

(because the PM10 reductions are required by regulation) the baseline cost is 

one-half the project cost. 
D-4 EXAMPLE CALCULATIONS 

• School bus calculations shall use the MHD or HHD vehicle emission factors and 

conversion factors depending on GVWR to calculate cost-effectiveness. 

• Applicants may claim ROG emission reductions from DECS if hydrocarbon emission 

reductions for that technology are obtained from the ARB’s retrofit website at: 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. For the Carl Moyer Program, ROG 

emission reductions will be credited at the 25 percent, 50 percent, and 85 percent 

reduction levels. To calculate emission reductions of ROG for the Carl Moyer 

Program, applicants should use the percentage reduction of hydrocarbons from the 

ARB’s retrofit website to determine the appropriate "level" of emission reductions. 

For example, a technology that provides a 40 percent emission reduction of 

hydrocarbons would be permitted to apply a 25 percent reduction in ROG emissions 

for determining eligibility and grant amount in the Carl Moyer Program. 

• Although electronic monitoring units are not required by the ARB, when an EMU is 

required by a district, it is an eligible expense for any category. 

• FTA provides up to an 80 percent grant for new urban bus purchases. For these 

projects the incremental cost would be the difference between the FTA grant amount 

and the cost of the reduced technology or baseline technology. 

• The cost of alternative fuel projects must be based on the total amortized cost of 

hardware (i.e., new engine or repower), and fuel, if applicable. 

• If all Carl Moyer Program criteria are met and the project is not a “fuel-only” project, 

the incremental cost of alternative fuel can be considered a qualified matching 

contribution from a district. 

B. Examples 

Example 1 – New Purchase of LNG Heavy-Duty Truck 

A trucking company proposes to purchase a new 2005 model year heavy heavy-duty 

truck equipped with a LNG engine certified to the optional standard of 1.8 g/bhp-hr NOx 

+ NMHC and 0.03 g/bhp-hr PM10 instead of a new heavy heavy-duty truck equipped 

with a diesel engine. This vehicle operates 100 percent of the time in California. 

Baseline Technology Information: 

• Baseline technology (application): 2005 diesel heavy heavy-duty on road truck 

• Cost (quote provided with application): $180,000 

• New diesel vehicle emission rates (Table B-5): 11.63 g/mi NOx, 0.26 g/mi ROG, 

0.252 g/mi PM10 

• Activity (application): 100,000 mi/yr 

• Percent operate in California (application): 100 percent 

Reduced Technology Information: 

• Reduced technology (application): 2005 heavy-duty LNG truck 
D-5 EXAMPLE CALCULATIONS 

• Cost (quote provided with application): $220,000 

• New LNG vehicle emission standard (Table B-2): 1.44 g/bhp-hr NOx, 

0.030 g/bhp-hr PM10 

• Conversion factor to convert g/bhp-hr to g/mi (Table B-8): 2.6 bhp-hr/mi 

Emission Reduction Calculations: 

Formula C-8: Estimated Annual Emissions based on Mileage using Emission Factors 

(use for baseline calculations) 

1. Annual NOx baseline technology emissions 

(11.63 g/mi * 100,000 mi/yr)(ton/907,200 g) = 1.28 tons/yr NOx 

2. Annual PM10 baseline technology emissions 

(0.252 g/mi * 100,000 mi/yr)(ton/907,200 g) = 0.028 tons/yr PM10 

Formula C-9: Estimated Annual Emissions based on Mileage using a Converted 

Emission Standards (use for reduced calculations) 

3. Annual NOx reduced technology emissions 

(1.44 g/bhp-hr * 2.6 bhp-hr/mi * 100,000 mi/yr)(ton/907,200 g) = 0.41 tons/yr NOx 

4. Annual PM10 reduced technology emissions 

(0.030 g/bhp-hr * 2.6 bhp-hr/mi * 100,000 mi/yr)(ton/907,200 g)= 0.009 tons/yr PM10 

ROG emission factors not available for reduced technology therefore ROG emission 

reductions cannot be calculated. 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 1.28 tons/yr – 0.41 tons/yr = 0.87 tons/yr NOx 

• PM10 emission benefits = 0.028 tons/yr – 0.009 tons/yr = 0.019 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.87 + 20(0.019) = 1.25 weighted tons/yr 

Annualized Cost: 

Project Life: 10 years 

CRF (Table B-1) = 0.123 

Formula C-14: Incremental Cost 

 $220,000 – $180,000 = $40,000 

Formula C-12: Annualized Cost 

 $40,000 * 0.123 = $4,920/yr 
D-6 EXAMPLE CALCULATIONS 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($4,920/yr)/(1.25 weighted tons/yr) 

= $3,936/ton of weighted surplus emissions reduced 

The weighted cost-effectiveness for the example is less than $14,300 per ton of 

pollutants reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 2 – Diesel to Diesel Heavy-Duty Truck Repower + Retrofit 

A line haul trucking company proposes to repower a 1994 heavy heavy-duty diesel truck 

with a model year 2003 certified diesel engine and retrofit the engine with a Level 3 

retrofit that is verified for both PM10 and NOx reductions. This vehicle operates 

90 percent of the time in California. 

Baseline Technology Information: 

• Baseline technology (application): 1994 diesel heavy heavy-duty engine 

• Cost rebuild (quote provided with application): $8,000 

• Baseline cost of retrofit: $0 

• Emission rates (Table B-5): 17.95 g/mi NOx, 0.40 g/mi ROG, 

0.367 g/mi PM10 

• Activity (application): 60,000 mi/yr 

• Percent operated in California (application): 90 percent 

Reduced Technology Information: 

• Reduced technology (application): 2003 diesel heavy heavy-duty engine 

• Repower cost (quote provided with application): $35,000 

• Retrofit cost (quote provided with application): $18,000 + $600 annual filter 

maintenance 

• Emission rates (Table B-5): 11.63 g/mi NOx, 0.26 g/mi ROG, 0.252 g/mi PM10 

• Retrofit verification emission levels (EO): 25 percent reduction of NOx and 

85 percent reduction of PM10. ROG is not counted since the retrofit device is not 

verified for ROG. 

Emission Reduction Calculations: 

Formula C-8: Estimated Annual Emissions based on Mileage using Emission Factors 

1. Annual NOx baseline technology emissions 

(17.95 g/mi * 0.90 * 60,000 mi/yr)(ton/907,200 g) = 1.07 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(11.63 g/mi * 0.90 * 60,000 mi/yr)(ton/907,200 g) = 0.69 tons/yr NOx 

3. Annual ROG baseline technology emissions 

(0.40 g/mi * 0.90 * 60,000 mi/yr)(ton/907,200 g) = 0.02 tons/yr ROG 

4. Annual ROG reduced technology emissions 

(0.26 g/mi * 0.90 * 60,000 mi/yr)(ton/907,200 g) = 0.02 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.367 g/mi * 0.90 * 60,000 mi/yr)(ton/907,200 g) = 0.022 tons/yr PM10 
D-7 EXAMPLE CALCULATIONS 

6. Annual PM10 reduced technology emissions 

(0.252 g/mi * 0.90 * 60,000 mi/yr)(ton/907,200 g) = 0.015 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 1.07 tons/yr – 0.69 tons/yr = 0.38 tons/yr NOx 

• ROG emission benefits = 0.02 tons/yr – 0.02 tons/yr = 0 tons/yr ROG 

• PM10 emission benefits= 0.022 tons/yr – 0.015 tons/yr = 0.007 tons/yr PM10 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) 

for Retrofits 

0.69 tons/yr NOx * 0.25 = 0.17 tons/yr NOx

0.015 tons/yr PM10 * 0.85 = 0.013 tons/yr PM10 

Total NOx Emission Benefits 

0.38 + 0.17 = 0.55 tons/yr NOx 

Total PM10 Emission Benefits 

0.007 + 0.013 = 0.02 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.55 + 20(0.02) = 0.95 weighted tons/yr 

Annualized Cost: 

Project Life: 5 years 

CRF (Table B-1) = 0.225 

Formula C-14: Incremental Cost 

 $35,000 + $18,000 + ($600*5) – $8,000 = $48,000 

Formula C-12: Annualized Cost 

 $48,000 * 0.225 = $10,800/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($10,800/yr)/(0.95 weighted tons/yr) = 

$11,368/ton of weighted surplus emissions reduced 

The cost-effectiveness for the example is less than $14,300 per ton of weighted 

pollutants reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 3 – Diesel Heavy-Duty Truck Retrofit 

A trucking company proposes to retrofit a 2005 heavy heavy-duty diesel truck with a 

Level 3 retrofit that is verified for both PM and NOx reductions. This vehicle operates 

80 percent of the time in California. 
D-8 EXAMPLE CALCULATIONS 

Baseline Technology Information: 

• Baseline technology (application): 2005 heavy heavy-duty diesel truck 

• Cost (retrofits are eligible for full cost unless being installed to meet regulatory 

requirements): $0 

• New diesel vehicle emission rates (Table B-5): 11.63 g/mi NOx; 

0.252 g/mi of PM10 

• Activity (application): 100,000 mi/yr 

• Percent operated in California (application): 80 percent 

Reduced Technology Information: 

• Retrofit verification emission levels (EO): 25 percent reduction of NOx and 

85 percent reduction of PM10. ROG is not counted since the retrofit device is not 

verified for ROG. 

• Retrofit cost (quote provided with application): $18,000 + $600 annual filter 

maintenance 

Emission Reduction Calculations: 

Formula C-8: Estimated Annual Emissions based on Mileage using Emission Factors

1. Annual NOx baseline technology emissions 

(11.63 g/mi * 0.80 * 100,000 mi/yr)(ton/907,200 g) = 1.03 tons/yr NOx 

2. Annual PM10 baseline technology emissions 

(0.252 g/mi * 0.80 * 100,000 mi/yr)(ton/907,200 g) = 0.022 tons/yr PM10 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Retrofits 

 1.03 * 0.25 = 0.26 tons/yr NOx 

 0.022 * 0.85 = 0.019 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.26 + 20(0.019) =0.64 weighted tons/yr 

Annualized Cost: 

Project Life: 5 years 

 CRF (Table B-1): = 0.225 

Formula C-14: Incremental Cost 

 $18,000 + ($600*5) – $0 = $21,000 

Formula C-12: Annualized Cost 

0.225 * 21,000 =$4,725/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

 ($4,725/yr)/(0.64 weighted tons/yr) = 

$7,383/ton of weighted surplus emissions reduced
D-9 EXAMPLE CALCULATIONS 

For retrofit projects that only take credit for NOx reductions from a Level 3 DECS 

(because the PM reductions are required by regulation) the baseline cost is one-half the 

project cost. 

The cost-effectiveness for the example is less than $14,300 per ton of pollutants 

reduced. This project qualifies for the maximum amount of grant funds requested. 

Example 4 –Purchase of a New CNG Street Sweeper 

A company proposes to purchase a new CNG street sweeper instead of a diesel 

sweeper. The GVWR of the new vehicle is 24,000 lbs. The CNG engine is certified to 

the optional emission standard of 1.2 g/bhp-hr for NOx+NMHC and 0.01 g/bhp-hr PM10. 

This vehicle operates 100 percent of the time in California. 

Baseline Technology Information: 

• Baseline technology (application): 2005 medium heavy-duty diesel vehicle 

• Cost (quote provided with application): $125,000 

• New diesel vehicle emission rates (Table B-4): 5.12 g/mi NOx, 0.08 g/mi ROG, 

0.216 g/mi PM10 

• Conversion factor to convert g/mile to g/bhp-hr (Table B-8): 2.3 bhp-hr/mi 

• Energy consumption factor: 18.5 bhp-hr/gal 

• Activity (application): 5,000 gal/yr 

• Percent operated in California (application): 100 percent 

Reduced Technology Information: 

• Reduced technology (application): 2005 medium heavy-duty CNG vehicle 

• Cost (quote provided with application): $160,000 

• New CNG vehicle emission standard (Table B-2): 0.96 g/bhp-hr NOx, 

0.01 g/bhp-hr PM10 

• Energy consumption factor: 18.5 bhp-hr/gal 

Emission Reduction Calculations: 

Formula C-7: Estimated Annual Emissions based on Fuel Consumed using On-Road 

Emission Factors (tons/yr) 

1. Annual NOx baseline technology emissions 

(5.12 g/mi / 2.3 bhp-hr/mi)(5,000 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.23 tons/yr NOx 

2. Annual PM10 baseline technology emissions 

(0.216 g/mi / 2.3 bhp-hr/mi)(5,000 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.01 tons/yr PM10 

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factor or Converted Emission Standards (tons/yr) 

3. Annual NOx reduced technology emissions 

(0.96 g/bhp-hr)(5,000 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.10 tons/yr NOx 
D-10 EXAMPLE CALCULATIONS 

4. Annual PM10 reduced technology emissions 

(0.01 g/bhp-hr)(5,000 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.001 tons/yr PM10 

ROG emission factors not available for reduced technology therefore 

ROG emission reductions cannot be calculated. 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 0.23 tons/yr – 0.10 tons/yr = 0.13 tons/yr NOx 

• PM10 emission benefits = 0.01 tons/yr – 0.001 tons/yr = 0.009 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.13 + 20(0.009) = 0.31 weighted tons/yr 

Annualized Cost: 

Project Life: 10 years 

 CRF (Table B-1): = 0.123 

Formula C-14: Incremental Cost 

 $160,000 – $125,000 = $35,000 

Formula C-12: Annualized Cost 

 0.123 * $35,000 = $4,305/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

 ($4,305/yr)/(0.31 weighted tons/yr) = 

$13,887/ton of weighted surplus emissions reduced

The cost-effectiveness for the example is less than $14,300 per ton of pollutants 

reduced. This project qualifies for the maximum amount of grant funds requested. 

Example 5 - Repower + Retrofit of Street Sweeper 

A company proposes to repower a 2001 diesel street sweeper with a 2006 CNG engine 

certified to the optional heavy-duty engine standard of 1.8 g/bhp-hr NOx + NMHC and 

0.03 g/bhp-hr PM10. The company will also retrofit the engine with a Level 3 retrofit 

that is verified for both PM and NOx reductions. This vehicle has a GVWR of 

19,000 lbs. and operates 100 percent of the time in California. 

Baseline Technology Information: 

• Baseline technology (application): 2001 diesel medium heavy-duty engine 

• Cost of rebuild (quote provided with application): $14,000 

• Emission rates (Table B-4): 9.77 g/mi NOx, 0.08 g/mi ROG, 

0.144 g/mi PM10 

• Conversion factor to convert g/mile to g/bhp-hr (Table B-8): 2.3 bhp-hr/mi 
D-11 EXAMPLE CALCULATIONS 

• Energy consumption factor: 18.5 bhp-hr/gal 

• Activity (application): 7,667 gal/yr 

• Percent operated in California (application): 100 percent 

Reduced Technology Information: 

• Reduced technology (application): 2006 CNG medium heavy-duty engine 

• Cost (quote provided with application): $47,750 

• Converted emission standard (Table B-2): 1.44 g/bhp-hr NOx; 0.030 g/bhp-hr PM10 

• Retrofit Cost (quote provided with application): $18,000 + $600 annual filter 

maintenance 

• Retrofit verification emission levels (EO): 25 percent reduction of NOx and 

85 percent reduction of PM10. ROG is not counted since the retrofit device is not 

verified for ROG. 

• Energy consumption factor: 18.5 bhp-hr/gal 

Emission Reduction Calculations: 

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standards (tons/yr) 

1. Annual NOx baseline technology emissions 

(9.77 g/mi / 2.3 bhp-hr/mi)(7,667 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.66 tons/yr NOx 

2. Annual PM10 baseline technology emissions 

(0.144 g/mi / 2.3 bhp-hr/mi)(7,667 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.010 tons/yr PM10 

Formula C-7: Estimated Annual Emissions based on Fuel Consumed using On-Road 

Emission Factors (tons/yr) 

3. Annual NOx reduced technology emissions 

(1.44 g/bhp-hr)(7,667 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.23 tons/yr NOx 

4. Annual PM10 reduced technology emissions 

(0.030 g/bhp-hr)(7,667 gal/yr)(18.5 bhp-hr/gal)(ton/907,200 g) 

= 0.005 tons/yr PM10 

ROG emission factors not available for reduced technology therefore 

ROG emission reductions cannot be calculated. 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 0.66 tons/yr – 0.23 tons/yr = 0.43 tons/yr NOx 

• PM10 emission benefits = 0.010 tons/yr – 0.005 tons/yr = 0.005 tons/yr PM10 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) 

for Retrofits 

0.23 tons/yr NOx * 0.25 = 0.06 tons/yr NOx

0.005 tons/yr PM10 * 0.85 = 0.004 tons/yr PM10 
D-12 EXAMPLE CALCULATIONS 

Total NOx Emission Benefits 

 0.43 + 0.06 = 0.49 tons/yr NOx 

 

Total PM10 Emission Benefits 

0.005 + 0.004 = 0.009 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.49 +20(0.009) = 0.67 weighted tons/yr 

Annualized Cost: 

Project Life: 5 years 

 CRF (Table B-1) = 0.225 

Formula C-14: Incremental Cost 

$47,750 + $18,000 + ($600 * 5) – $14,000 = $54,750 

Formula C-12: Annualized Cost 

0.225 * $54,750 = $12,319/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

 ($12,319/yr)/(0.67 weighted tons/yr) = 

$18,387/ton of weighted surplus emissions reduced 

The cost-effectiveness for this example is greater than the $14,300 per ton weighted 

cost-effectiveness requirement. In order to meet the $14,300 per ton weighted 

cost-effectiveness requirement, this project would only qualify for a fraction of the 

incremental cost – $42,582. This amount is determined by multiplying the maximum 

allowed cost-effectiveness by the estimated annual emission reductions and dividing by 

the capital recovery factor: 

($14,300 * 0.67)/0.225 = $42,582 

Example 6 –Purchase of a New CNG Bus 

A transit agency proposes to purchase a new 2005 CNG bus certified to the alternative 

fuel optional standard of 1.2 g/bhp-hr NOx + NMHC and 0.01 g/bhp-hr PM10 instead of 

a new CNG bus certified to the current alternative fuel standard of 2.5g/bhp-hr 

NOx+NMHC. The baseline cost for this project is based on a diesel engine. This new 

CNG bus is surplus to the ARB transit bus fleet rule. The new bus will operate 

100 percent of the time in California. 

Baseline Technology Information: 

• Baseline technology (application): 2005 CNG urban bus 

• Cost (quote provided with application): $350,000 

• Emission standard (Table B-2): 2.0 g/bhp-hr NOx and 0.010 g/bhp-hr PM10 
D-13 EXAMPLE CALCULATIONS 

• Activity (application): 50,000 mi/yr 

• Percent operated in California (application): 100 percent 

Reduced Technology Information: 

• Reduced technology (application): 2005 CNG urban bus certified to optional 

standard 

• Cost (quote provided with application): $390,000 

• Converted emission standard (Table B-2): 0.96 g/bhp-hr NOx and 

0.010 g/bhp-hr PM10 

• Conversion factor to convert the standard in g/bhp-hr to g/mi (Table B-8): 

4.3 bhp-hr/mi 

Emission Reduction Calculations: 

Formula C-9: Estimated Annual Emissions based on Mileage using a Converted 

Emission Standards 

1. Annual NOx baseline technology emissions 

(2.00 g/bhp-hr *4.3 bhp-hr/mi)(50,000 mi/yr)(ton/907,200 g) = 0.47 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(0.96 g/bhp-hr * 4.3 bhp-hr/mi)(50,000 mi/yr)(ton/907,200 g) = 0.23 tons/yr NOx 

3. Annual PM10 baseline technology emissions 

(0.010 g/bhp-hr *4.3 bhp-hr/mi)(50,000 mi/yr)(ton/907,200 g) = 0.002 tons/yr PM10 

4. Annual PM10 reduced technology emissions 

(0.010 g/bhp-hr * 4.3 bhp-hr/mi)(50,000 mi/yr)(ton/907,200 g) = 0.002 tons/yr PM10 

ROG emission factors not available for reduced technology therefore 

ROG emission reductions cannot be calculated. 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 0.47 tons/yr – 0.23 tons/yr = 0.24 tons/yr NOx 

• PM10 emission benefits = 0.002 tons/yr – 0.002 tons/yr = 0 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.24 + 20(0) = 0.24 weighted tons/yr 

Annualized Cost: 

Project Life: 12 years 

CRF (Table B-1) = 0.107 

Transit agencies receive an 80 percent grant from the Federal Transportation Agency 

for most new vehicle purchases. This grant must be subtracted before calculating the 

incremental cost. 

Transit agency’s cost for baseline technology: $350,000 * 0.20 = $70,000 
D-14 EXAMPLE CALCULATIONS 

Transit agency’s cost for reduced technology: $390,000 * 0.20 = $78,000 

Formula C-14: Incremental Cost 

$78,000 – $70,000 = $8,000 

Formula C-12: Annualized Cost 

 0.107 * $8,000 = $856/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($856/yr)/(0.24 weighted tons/yr) = 

$3,566/ton of weighted surplus emissions reduced

The cost-effectiveness for the example is less than $14,300 per ton of pollutants 

reduced. This project qualifies for the maximum amount of grant funds requested. 

C. Auxiliary Engine Calculations 

To calculate the emission benefits of an auxiliary engine, see the Example #3 in the 

off-road section of this Appendix. 
D-15 EXAMPLE CALCULATIONS 

II. On-Road Heavy-Duty Fleet Modernization 

This section provides examples of calculations for determining the cost-effectiveness of 

surplus emission reductions for fleet modernization projects. 

A. General Criteria for Fleet Modernization Cost-Effectiveness 

Calculations 

• Target vocations are eligible for a five year project life. 

• Applicants may claim ROG emission reductions from DECS if hydrocarbon emission 

reductions for that technology are obtained from the ARB’s retrofit website at: 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. For the Carl Moyer Program, ROG 

emission reductions will be credited at the 25 percent, 50 percent, and 85 percent 

reduction levels. To calculate emission reductions of ROG for the Carl Moyer 

Program, applicants should use the percentage reduction of hydrocarbons from the 

ARB’s retrofit website to determine the appropriate "level" of emission reductions. 

For example, a technology that provides a 40 percent emission reduction of 

hydrocarbons would be permitted to apply a 25 percent reduction in ROG emissions 

for determining eligibility and grant amount in the Carl Moyer Program. 

• For these calculations, PM10 refers to combustion PM10. 

B. Examples 

Example 1 – Replacement of a Heavy-Heavy Duty Truck from a Targeted Vocation 

A participant wants to scrap an old, heavy heavy-duty truck used to haul cargo from the 

Port of Long Beach and replace it with a newer, used truck. The participant has 

provided conclusive documentation that for the last three years the old truck operated 

100 percent of the time in and around the Port area. The replacement truck will be 

equipped with a Level 1 diesel emission control system (DECS) and an electronic 

monitoring unit (EMU). The replacement truck is required to continue operating in the 

same vocation and location for the life of the project. 

Baseline Technology Information

• Baseline technology (application): 1983 heavy heavy-duty diesel truck 

• Emission rates (Table B-5): 21.39 g/mi NOx, 1.04 g/mi ROG, 

1.249 g/mi PM10 

• Activity (application): 42,000 miles/year 

• Percent operated in California (application): 100 percent 

• Vocation (application): Port hauling 

Reduced Technology Information: 

• Reduced technology (application): 2000 heavy heavy-duty diesel truck 

• Emission rates (Table B-5): 17.58 g/mi NOx, 0.51 g/mi ROG, 

0.403 g/mi PM10 
D-16 EXAMPLE CALCULATIONS 

• Retrofit verification emission levels (EO): 25 percent NOx; 85 percent PM reduction 

• Cost (quote provided with application): $40,000 

• DECS cost (quote provided with application): $18,300 

• EMU cost: $1,150 (Includes installation and monitoring for five years) 

Emission Reduction Calculations: 

Formula C-8: Estimated Annual Emissions Based on Mileage Using 

Emission Factors 

1. Annual NOx baseline technology emissions 

(21.39 g/mi * 42,000 mi)(ton/ 907,200 g) = 0.990 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(17.58 g/mi * 42,000 mi)(ton/ 907,200 g) = 0.814 tons/yr NOx 

3. Annual ROG baseline technology emissions 

(1.04 g/mi * 42,000 mi) (ton/ 907,200 g) = 0.048 tons/yr ROG 

4. Annual ROG reduced technology emissions 

(0.51 g/mi * 42,000 mi)(ton/ 907,200 g) = 0.024 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

(1.249 g/mi * 42,000 mi)(ton/ 907,200 g) = 0.058 tons/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.403 g/mi * 42,000 mi)(ton/ 907,200 g) = 0.019 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases: 

• NOx Emission Benefits = 0.990 tons/yr - 0.814 tons/yr = 0.176 tons/yr NOx 

• ROG Emission Benefits = 0.048 tons/yr - 0.024 tons/yr = 0.024 tons/yr ROG 

• PM10 Emission Benefits = 0.058 tons/yr - 0.019 tons/yr = 0.039 tons/yr PM10 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Retrofits: 

Emission benefits of the replacement truck with the DECS providing an additional 

25 percent NOx and 85 percent PM reduction 

 0.814 tons/yr NOx * 0.25 = 0.204 tons/yr NOx 

 0.019 tons/yr PM10 * 0.85 = 0.016 tons/yr PM10 

Total NOx Emission Benefits

0.176 tons/yr + 0.204 tons/yr = 0.380 tons/yr NOx 

Total PM10 Emission Benefits

0.039 tons/yr + 0.016 tons/yr = 0.055 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.380 tons/yr + 0.024 tons/yr + 20(0.055 tons/yr) = 1.504 weighted tons/yr

Annualized Cost

Project Life = 5 Years 

 CRF (Table B-1) = 0.225 
D-17 EXAMPLE CALCULATIONS 

Formula C-15: Incremental Cost 

NADA Value of Replacement Truck: 

0.72 * $40,000 = $28,800 

Replacement Truck + DECS + EMU: 

 $28,800 + $18,300 + $1,150 = $48,250 

Formula C-12: Annualized Cost

 $48,250 * 0.225 = $10,856/yr 

Cost-Effectiveness

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions

=($10,856/yr) / (1.504 weighted tons/yr)

= $7,218 weighted tons/yr 

In this example, the cost-effectiveness is less than threshold of $14,300 per weighted 

ton of pollutants reduced. This project qualifies for $28,800, the maximum amount of 

grant funds requested. The applicant will take out a loan to pay the remaining $12,000 

for the replacement truck. 

Example 2 – Tiered Transaction 

The owner of a 2000 model year, heavy heavy-duty truck wants to purchase a new 

2005 model year truck meeting the optional NOx standard. He has proposed a tiered 

transaction where he will buy a new truck and contribute his 2000 model year truck to 

the owner of a 1990 truck. The owner of the old truck has agreed to scrap the old, 

heavy heavy-duty truck that is used exclusively to haul agricultural commodities. The 

old truck owner has provided conclusive documentation that for the last three years the 

truck operated 100 percent of the time in the Central Valley region. The replacement 

truck will be equipped with a Level 3 diesel emission reduction system (DECS) and an 

electronic monitoring unit (EMU). The replacement truck is required to continue 

operating in the same vocation and location for the life of the project. 

 a. Fleet Modernization Transaction 

Old Vehicle Information (Baseline Technology): 

• Model: 1990 heavy heavy-duty diesel truck 

• Activity: 65,000 miles/year 

• Vocation: Agriculture (qualifies as a target vocation) 

• Percent Operation in California: 100 percent 

• Emission Rates (Table B-5): 21.11 g/mi NOx , 0.81 g/mi ROG, 1.354 g/mi PM10 

Replacement Truck Information (Reduced Technology): 

• Model: 2000 heavy heavy-duty diesel truck 

• Cost (quote provided with application): $50,000 

• Emission Rates (Table B-5): 17.58 g/mi NOx, 0.51 g/mi ROG, 0.403 g/mi PM10 

• DECS Cost: $19,100 (Level 3, 25 percent NOx + 85 percent PM Reduction) 

• EMU Cost: $1,150 (Includes installation and monitoring for five years) 
D-18 EXAMPLE CALCULATIONS 

Emission Reduction Calculations: 

Formula C-8: Estimated Annual Emissions Based on Mileage Using Emission Factors 

1. Annual NOx baseline technology emissions 

(21.11 g/mi * 65,000 mi) / (ton/907,200 g) = 1.51 tons/yr NOx 

2. Annual NOx reduced technology emissions 

 (17.58 g/mi * 65,000 mi) / (ton/907,200 g) = 1.26 tons/yr NOx 

3. Annual ROG baseline technology emissions 

 (0.81 g/mi * 65,000 mi) / (ton/907,200 g) = 0.06 tons/yr ROG 

4. Annual ROG reduced technology emissions 

 (0.51 g/mi * 65,000 mi) / (ton/907,200 g) = 0.04 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

 (1.354 g/mi * 65,000 mi) / (ton/907,200 g) = 0.097 tons/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.403 g/mi * 65,000 mi) / (ton/907,200 g) = 0.029 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant 

• NOx Emission Benefits = (1.51 -1.26) tons/yr = 0.25 tons/yr NOx 

• ROG Emission Benefits = (0.06 - 0.04) tons/yr = 0.02 tons/yr ROG 

• PM10 Emission Benefits = (0.097 - 0.029) tons/yr = 0.068 tons/yr PM10 

Formula C-11: Annual Surplus Emission Reductions with DECS

Emission Benefits of the Replacement Truck with the DECS providing an additional 

25 percent NOx and 85 percent PM reduction 

• NOx Emission Benefits = (1.26 tons/yr * 0.25) = 0.32 tons/yr NOx 

• PM10 Emission Benefits = (0.029 tons/yr * 0.85) = 0.025 tons/yr PM10 

Total NOx Emission Benefits 

0.25 tons/yr + 0.32 tons/yr = 0.57 tons/yr NOx 

Total PM10 Emission Benefits 

0.068 tons/yr + 0.025 tons/yr = 0.093 tons/yr PM10

Formula C.2: Annual Weighted Surplus Emission Reductions 

0.57 tons/yr + 0.02 tons/yr + 20(0.093 tons/yr) = 2.45 weighted tons/yr

Annualized Cost

Project Life = 5 Years (target vocations are eligible for 5 year project life) 

Capital Recovery Factor = 0.225 (Table B-1) 

Incremental Cost

NADA Value of Replacement Truck: $36,000 

Replacement Truck + DECS + EMU 

 = $36,000 + $19,100 + $1,150 = $56,250 
D-19 EXAMPLE CALCULATIONS 

Formula C-12: Annualized Cost

Incremental Cost * Capital Recovery Factor 

 $56,250 * 0.225 = $12,656 

Cost-Effectiveness

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions

($12,656/yr) / (2.45 weighted ton/yr) 

= $5,166/ton of weighted surplus emissions reduced

 b. New Vehicle Transaction 

Baseline Technology Information: 

• Baseline Technology: 2005 heavy heavy-duty diesel truck 

• Cost (quote provide with application): $110,000 

• Emission Rates (Table B-5): 11.63 g/mi NOx, 0.252 g/mi PM10 

• Percent operation in California (application): 100 percent 

Reduced Technology Information (New, Low Emission, Optional Standard Truck):

• Reduced technology (application): 2005 heavy-duty LNG truck certified to the 

1.8 NOx + NMMC + 0.030 PM Standard 

• Cost (quote provided with application): $150,000 

• New LNG vehicle emission standard (Table B-2): 1.44 g/bhp-hr NOx, 

0.030 g/bhp-hr PM10 

• Conversion factor to convert the standard to g/mi (Table B-8): 2.6 bhp-hr/mi 

• Activity: 75,000 mi/year 

Emission Reduction Calculations: 

Formula C-8: Estimated Annual Emissions Based on Mileage Using Emission Factors 

(used for baseline calculations) 

Formula C-9: Estimated Annual Emissions Based on Mileage Using Converted 

Emission Standards (used for reduced calculations) 

1. Annual NOx baseline technology emissions 

(11.63 g/mi * 75,000 mi/yr)(ton / 907,200 g) = 0.96 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(1.44 g/bhp-hr * 2.6 bhp-hr/mi * 75,000 mi/yr)(ton / 907,200 g) = 0.31 tons/yr NOx 

3. Annual PM10 baseline technology emissions 

(0.252 g/mi * 75,000 mi/yr)(ton / 907,200 g) = 0.021 tons/yr PM10 

4. Annual PM10 reduced technology emissions 

(0.030 g/bhp-hr * 2.6 bhp-hr/mi * 75,000 mi/yr)(ton /907,200 g) = 0.006 tons/yr PM10 

ROG emission factors not available for reduced technology therefore 

ROG emission reductions cannot be calculated. 
D-20 EXAMPLE CALCULATIONS 

Formula C-10: Annual Surplus Emission Reductions by Pollutant for New Purchases 

• NOx emission benefits = 0.96 tons/yr – 0.31 tons/yr = 0.65 tons/yr NOx 

• PM10 emission benefits = 0.021 tons/yr – 0.006 tons/yr = 0.015 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.65 tons/year + 20(0.015) tons/year = 0.95 weighted tons/yr 

Annualized Cost: 

Project Life: 10 years 

CRF (Table B-1) = 0.123 

Formula C-14: Incremental Cost 

 $150,000 - $110,000 = $40,000 

Formula C-12: Annualized Cost 

 $40,000 * 0.123 = $4,920/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

= ($4,920/yr) / (0.95 weighted tons/yr) 

= $5,179/ton of weighted surplus emissions reduced 

 c. Tiered Transaction Calculations 

Annualized Cost of the Tiered Transaction 

Fleet Mod. Project Life: 5 Years (Target vocations have 5 year project life) 

CRF (Table B-1) = 0.225 

New, Low NOx Truck Project Life: 10 Years 

CRF (Table B-1) = 0.123 

Incremental Cost of the Tiered Transaction: 

(Incremental cost of the Fleet Mod Project from Section a) + (Incremental cost of the 

New, Low NOx Project from section b) 

$56,250 + $40,000 = $96,250 

Annualized Cost of the Tiered Transaction 

(Annualized Cost of Fleet Mod. Project from section a) + (Annualized Cost of New, Low 

NOx Project from section b) 

$12,656 + $4,920 = $17,576 
D-21 EXAMPLE CALCULATIONS 

Emission Reductions

Annual Weighted Surplus Emission Reductions of the Tiered Transaction

(Weighed Emissions Reductions of the Fleet Mod Project) + (Weighed Emission 

Reductions of the New, Low-NOx Project) 

(2.45 weighted tons/yr) + (0.95 weighted tons/yr) = 3.40 weighted tons/yr 

Cost-Effectiveness of the Tiered Transaction

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

 = ($17,567/yr) / (3.40 weighted tons/year) 

= $5,167/year of weighted surplus emissions reduced 

In this example, the cost-effectiveness is less than the threshold of $14,300 per 

weighted ton of pollutants reduced. Both tiered transaction project applicants qualify for 

the maximum amount of grant funds requested. A breakdown of the project cost 

follows: 

• Carl Moyer Program incentives for the tiered transaction project: 

Replacement truck (72 percent of $50,000 

+ full cost of EMU and retrofit) $ 56,250 

New truck (Incremental cost) $ 40,000

Total Carl Moyer Program incentives $ 96,250

• Net cost of the tiered transaction to the fleet mod. participant: 

 

 Cost of the replacement truck: $ 50,000 

 Cost of EMU and retrofit $ 20,250

 Total cost of truck/EMU/retrofit $ 70,250 

 

Carl Moyer Program Incentive -$56,250 

 Net cost to participant $14,000

• Net cost of the tiered transaction to the new low NOx truck purchaser: 

 Cost of the new, low NOx truck: $150,000 

 Value of the 2000 replacement truck: $ 50,000 

Carl Moyer Program Incentive -$ 40,000 

 Payment received for replacement truck -$ 50,000

 Net cost to participant for new truck $110,000
D-22 EXAMPLE CALCULATIONS 

III. Heavy-Duty Truck Idle Reduction 

This section provides an example calculation for determining the cost-effectiveness of 

surplus emission reductions for heavy-duty truck idling reducing technology projects. 

A. General Criteria for Heavy-Duty Truck Idling Reducing Technologies 

Cost-Effectiveness Calculations 

• The actual capital cost, up to $5,500, of an APU may be funded. 

• The installation cost of an APU, including installation of an hour meter, up to a 

maximum of $1,700 per diesel APU and a maximum of $3,400 per alternative fuel, 

electric motor, or fuel cell APU, may be funded. 

• The cost of a PM retrofit may be funded provided the overall project cost 

effectiveness is under the limit of $14,300 

• For these calculations, PM10 refers to combustion PM10. 

• The minimum project life is three years. 

• Annual hours of equipment operation for determining emission reductions must be 

based only on readings from an installed and fully operational hour meter. A 

properly functioning hour meter is required to support equipment activity information 

included in the application for Carl Moyer Program funding. 

• Applicants may claim ROG emission reductions from DECS if hydrocarbon emission 

reductions for that technology are obtained from the ARB’s retrofit website at: 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. For the Carl Moyer Program, ROG 

emission reductions will be credited at the 25 percent, 50 percent, and 85 percent 

reduction levels. To calculate emission reductions of ROG for the Carl Moyer 

Program, applicants should use the percentage reduction of hydrocarbons from the 

ARB’s retrofit website to determine the appropriate "level" of emission reductions. 

For example, a technology that provides a 40 percent emission reduction of 

hydrocarbons would be permitted to apply a 25 percent reduction in ROG emissions 

for determining eligibility and grant amount in the Carl Moyer Program. 

• Default maximum project life: 

Off-road new purchase 10 years 

Off-road repower 7 years 

Repower + retrofit 5 years 

Retrofit 5 years 

Project life beyond the default maximum may be submitted with documentation for 

approval by ARB. 
D-23 EXAMPLE CALCULATIONS 

B. Example 

Example 1 (Truck Stop Electrification (TSE) Project

A HDV truck operator proposes to install a TSE system consisting of an electrical plug, 

inverter/charger and electrical HVAC on a HDV to substitute shore power for the truck’s 

auxiliary power unit (APU). The APU operates 1,800 hours/year. 

Annual Baseline Idling Hours at truck stop in California: 1,800 

Idling Power Requirement: 2.7 kilowatts = 1.99 hp

Idling Substitution Rate: 100% 

Conversion factor: 1 ton = 907,200g 

Estimated cost of electrical plug, inverter/charger

 and electrical HVAC: $10,000 

Estimated Installation Cost: $4,000 

Amount Requested: $8,900 

The truck idling emission rates for 2007 are: 191.5 gm/hr of NOx, 25.6 gm/hr of ROG 

and 1.5 gm/hr of PM (Table B-9). 

The APU idling emission factors for 2008 and subsequent years are: 

5.76 gm/bhp-hr for NOx, .57 gm/bhp-hr and 0.376 gm/bhp-hr for PM 

(Table B-10). 

Formula C-3: Estimated Annual Emissions by Pollutant (tons/yr): 

Truck emissions in 2007 are: 

NOx: (191.5 gm/hr)(1800 hrs/year)/(907,200 gm/ton) = 0.38 ton/yr 

ROG: (25.6 gm/hr)(1800 hrs/year)/(907,200 gm/ton) = 0.051 ton/yr 

PM: (1.5 gm/hr)(1800 hrs/year)/(907,200 gm/ton) = .003 ton/yr 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) 

Baseline – Reduced (TSE is the reduced so emissions = 0) 

NOx = 0.38 ton/yr - (0.0 ton/yr) = 0.38 ton/yr 

ROG = 0.051 ton/yr - (0.0 ton/yr) = 0.051 

PM : (0.003 ton/yr) – (0.0 ton/yr) = 0.003 ton/yr 

Formula C-2: Annual Weighted Surplus Emission Reductions: 

Annual Weighted Surplus Emissions Reductions in 2007: 

(0.38) + (0.051) + (20)(0.003) = 0.461 ton/yr 

Formula C-3: Estimated Annual Emissions by Pollutant (tons/yr): 

APU emissions in 2008 are baseline: 4.14 gm/bhp-hr of NOx, 

0.41 gm/bhp-hr of ROG and 0.152 gm/bhp-hr of PM (Table B-10) 

NOx (4.14 gm/bhp-hr)(2 hp)(1800 hrs/yr)/(907,200 gm/ton) = 0.02 ton/yr 

ROG (0.41 gm/bhp-hr)(2 hp)(1800 hr/yr)/(907,200 gm/ton = 0.002 ton/yr 
D-24 EXAMPLE CALCULATIONS 

PM: (0.152 gm/bhp-hr)(2 hp)(1800 hrs/yr)(907,200 gm/ton) = 0.001 ton/yr 

Reduced emissions in 2008 are the APU baseline values due to TSE = zero emissions 

Formula C-2: Annual Weighted Surplus Emission Reductions: 

Annual Weighted Surplus Emissions Reductions in 2008 are 

(0.02 ton/yr) + (.002 ton/yr)) + (20)(0.001 ton/yr) = 0.032 ton/yr 

2009 is same as 2008 

Average over three years is: 

((0.461) + (0.032) + (.032))/(3) = 0.175 tons/yr 

Cost and Cost-Effectiveness Calculations 

The annualized cost is based on the installation cost of the electrification package, the 

expected life of the project (3 years), and the interest rate (3%) used to amortize the 

project cost over the project life. The maximum amount that can be funded by the 

Carl Moyer Program fund is determined as follows: 

Electrification Capital Cost : $10,000 

Electrification Installation Cost: $4,000 

CMP Amount Requested: $8,900 

Formula C-13: Capitol Recovery Factor (CRF): 

 [(1 + 0.04)3 (0.04)]/[(1 + 0.04)3 – 1]= 0.361 

Formula C-12: Annualized Cost ($): 

Annualized Cost (0.361)($8,900)= $3,213/yr 

Cost-Effectiveness (Based on weighted average emissions reduction) 

 ($3,213/year)/(0.175 tons/year)= $18,360/ton. 

Amount that would qualify: 

 ($14,300)*(0.175)/(0.35) = $7,150

Project starts in 2008: 

Annual Weighted Surplus Emissions Reductions in 2008 are 

(0.02 ton/yr) + (.002 ton/yr)) + (20)(0.001 ton/yr) = 0.032 ton/yr 

And this is the same for 2009 and 2010 for a three year project life. 

So the cost effectiveness is: 

 ($3,213/year)/(0.032 tons/year)= $100,093/ton 

Amount that would qualify: 

 ($14,300)*(0.032)/(0.361) = $1,268
D-25 EXAMPLE CALCULATIONS 

IV. Transport Refrigeration Units 

This section provides two examples of calculations for determining the 

cost-effectiveness of surplus emission reductions for TRU projects. 

A. General Criteria for TRU Cost-Effectiveness Calculations: 

• TRU emission reduction calculations will use either fuel-based or hour-based 

formula for cost-effectiveness calculations. 

• Annual hours of equipment operation for determining emission reductions must be 

based only on readings from an installed and fully operational hour meter. A 

properly functioning hour meter is required to support equipment activity information 

included in the application for CMP funding. 

• TRU engine emissions increase with load. Load factors have been determined for 

TRU engines and have been found to vary by engine horsepower category. 

Table B-11 shows the default load factors assigned for use in the Carl Moyer 

Program. 

• Baseline and reduced engine emission factors are listed in Table B-12 Appendix B. 

• Applicants may claim ROG emission reductions from DECS if hydrocarbon emission 

reductions for that technology are obtained from the ARB’s retrofit website at: 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. For the Carl Moyer Program, ROG 

emission reductions will be credited at the 25 percent, 50 percent, and 85 percent 

reduction levels. To calculate emission reductions of ROG for the Carl Moyer 

Program, applicants should use the percentage reduction of hydrocarbons from the 

ARB’s retrofit website to determine the appropriate "level" of emission reductions. 

For example, a technology that provides a 40 percent emission reduction of 

hydrocarbons would be permitted to apply a 25 percent reduction in ROG emissions 

for determining eligibility and grant amount in the Carl Moyer Program. 

B. Examples 

Example 1 – Repower 

A TRU owner proposes to purchase and install a new engine in an existing trailer TRU 

that uses a 1999 model year TRU Tier 1 engine rated at 37.8 hp. From records, the 

owner knows the existing TRU engine has operated an average of 1,300 hours per 

year. The owner anticipates this operating trend will continue for the next three years. 

He doesn’t know what the TRU engine load factor is for his operations. Both the old 

and new operations occur 100 percent in California. The replacement engine will be a 

2006 model year Tier 2 engine rated at 37.8 hp. The cost of the new certified engine 

will be $4,000; the cost to replace the existing engine with a remanufactured 1999 

model year engine is $3200. Installation and engineering costs for the repower will be 
D-26 EXAMPLE CALCULATIONS 

$700 greater than replacement with a remanufactured engine due to the need to modify 

motor mounts. 

Baseline Technology Information: 

• Baseline technology (application): 1999 engine 

• Emission factors (Table B-12): 5.26 g/bhp-hr NOx, 1.74 g/bhp-hr ROG, 

0.480 g/bhp-hr PM10 (Tier 1) 

• Engine rated HP (application): 37.8 hp 

• Default load factor (Table B-11): 0.53 

• Annual hours of operation (application): 1,300 hours 

Reduced Technology Information: 

• Reduced technology (application): 2006 engine 

• Emission factors (Table B-12): 4.63 g/bhp-hr NOx, 0.29 g/bhp-hr ROG, 

0.280 g/bhp-hr PM10 (Tier 2) 

• Reduced engine rated HP (application): 37.8 hp 

• Default load factor (Table B-11): 0.53 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions based on Hours of Operation (tons/yr) 

1. Annual NOx baseline technology emissions 

(5.26 g/bhp-hr)(37.80 hp)(0.53)(1,300 hrs/yr)(1 ton/907,200 g) 

= 0.15 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(4.63 g/bhp-hr)(37.80 hp)(0.53)(1,300 hrs/yr)(1 ton/907,200 g) 

= 0.13 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(1.74 g/bhp-hr)(37.80 hp)(.53)(1,300 hrs/yr)(1ton/907,200 g) 

= 0.05 tons/yr ROG 

4. Annual ROG reduced technology emissions 

(0.290 g/bhp-hr)(37.80 hp)(0.53)(1,300 hrs/yr)(1 ton/907,200 g) 

= 0.01 ton/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.480 g/bhp-hr)(37.8 hp)(0.530)(1,300 hrs/yr)(1 ton/907,200 g) 

= 0.014 tons/yr tons/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.280 g/bhp-hr)(37.80 hp)(0.530)(1,300 hrs/yr)(1 ton/907,200 g) 

= 0.008 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 0.15 tons/yr - 0.13 tons/yr = 0.01 tons/yr NOx 

• ROG emission benefits = 0.05 tons/yr - 0.01 tons/yr = 0.04 tons/yr ROG 

• PM10 emission benefits = 0.014 tons/yr - 0.008 tons/yr = 0.006 tons/yr PM10 
D-27 EXAMPLE CALCULATIONS 

Formula C-2: Annual Weighted Surplus Emission Reductions: 

0.01 + 0.04 + 20(0.006) = 0.17 weighted tons/yr 

Annualized Cost: 

Project Life: 3 years 

CRF (Table B-1): = 0.360 

Formula C -14: Incremental Cost: 

$4,000 + $700 - $3,200 = $1,500 

Formula C-12: Annualized Cost 

$1,500 * 0.360 = $540/yr 

Cost Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton): 

($540yr)/(0.17 weighted ton/yr) 

 = $3,176/ton of weighted surplus emissions reduced 

This project would qualify for a $1,500 Carl Moyer Program grant, covering all of the 

capital and installation costs of the project. 

Example 2 – Retrofit 

A TRU owner decides to retrofit a 34 hp model year 2001 TRU Tier 1 engine with a 

verified Level 3 active diesel particulate filter (DPF) system that uses a fuel-borne 

catalyst (FBC). The capital cost for the DPF system with FBC dosing unit is $2,800, 

including installation. The owner reports operating the TRU 2,000 hours per year. The 

project would commence by January 1, 2007. The applicant is willing to commit to a 

three year project life. 

Surplus emissions from early compliance: 

Model year 2001 TRU engines must comply with the TRU ATCM's LETRU In-Use 

Performance Standard (Level 2 – 50 percent PM reduction) by the end of 2008. Model 

year 2001 TRU engines must also comply with the TRU ATCM’s ULETRU standard 

(Level 3 – 85 percent PM reduction) by the end of 2015. Therefore, all of the emission 

reductions in 2007 and 2008 would be surplus. And, in the third year of the project, 

2009, the surplus emissions would be 35 percent (85 percent minus 50 percent) of the 

baseline engine emissions. The ARB test data shows ROG reductions of 55 percent 

from use of the DPF. For the Carl Moyer Program, the applicant may count a 

50 percent ROG reduction for the cost-effectiveness calculation. 

Baseline Technology Information: 

• Baseline technology (application): 34 hp model year 2001 TRU engine 

• Baseline engine rated HP (application): 34 hp 

• Default load factor (Table B-11): 0.53 (assumed to stay constant before and after 

project) 

• Annual hours of operation (application): 2,000 hr/yr 
D-28 EXAMPLE CALCULATIONS 

• Emission factors (Table B-12): 1.74 g/bhp-hr ROG, 0.480 g/bhp-hr PM10 

Reduced Technology Information: 

• Reduced technology (application): Level 3 active diesel particulate filter (DPF) 

system that uses a fuel-borne catalyst (FBC). 

• Retrofit verification emission level (EO): 50 percent ROG, 85 percent PM10 

• Cost (quote provided by applicant): $2,800 for DPF system with FBC dosing 

including installation. 

• Annual hours of operation (application): 2,000 hr

Emission Reduction Calculations

Formula C-4: Estimated Annual Emissions based on hours of Operation (tons/yr) 

1. Annual ROG baseline technology emissions 

(1.74 g/bhp-hr)(0.53)(2,000 hr)(1 ton/907,200 g) = 0.07 tons/yr ROG 

2. Annual PM10 baseline technology emissions 

(0.480 g/bhp-hr)(34.00 hp)(0.530)(2,000 hrs/yr)(1 ton/907,200 g) 

= 0.019 tons/yr PM10 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Retrofits 

 Estimated emission reductions are: 

2007: 0.07 tons/yr * 0.50 = 0.04 tons/yr ROG 

2008: 0.07 tons/yr * 0.50 = 0.04 tons/yr ROG 

2009: 0.07 tons/yr * 0.50 = 0.04 tons/yr ROG 

2007: 0.019 tons/yr * 0.85 = 0.016 tons/yr PM10 

2008: 0.019 tons/yr * 0.85 = 0.016 tons/yr PM10 

2009: 0.019 tons/yr * 0.35 = 0.007 tons/yr PM10 

 

Average PM10 Reductions = (0.016 tons/yr PM10 + 0.016 tons/yr PM10 + 

0.007 tons/yr PM10)/3 = 0.013 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.04 + 20(0.013) = 0.30 weighted tons/yr 

Annualized Cost: 

Project Life: 3 years 

CRF (Table B-1): = 0.360 

Formula C-14: Incremental Cost 

 $2,800 – $0 = $2,800 

(Note: Annual operating costs above normal (e.g., cost of FBC) cannot be paid for with 

Carl Moyer Program funds, but air districts may elect to pay for these with matching 

funds.) 
D-29 EXAMPLE CALCULATIONS 

Formula C-12: Annualized Cost 

 0.360 * $2,800 = $1,008/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($1,008/yr)/(0.30 weighted ton/yr) 

=$3,360/ ton of weighted surplus emissions reduced

The cost-effectiveness is below the $14,300 threshold. This project would therefore 

qualify for a $2,800 Carl Moyer Program grant covering all of the capital costs and 

installation costs of the project 
D-30 EXAMPLE CALCULATIONS 

V. Off-Road Compression-Ignition Engines 

This section provides four examples of calculations for determining the 

cost-effectiveness of surplus emission reductions for off-road compression-ignition 

projects. 

A. General Criteria for Off-Road Compression-Ignition Engine 

Cost-Effectiveness Calculations 

• Off-road emission reduction calculations will use either fuel-based or hour-based 

formula for weighted cost-effectiveness calculations. 

• Annual hours of equipment operation for determining emission reductions must be 

based only on readings from an installed and fully operational hour meter. A 

properly functioning hour meter is required to support equipment activity information 

included in the application for CMP funding. 

• For applications or equipment not listed in Table B-13 in Appendix B, a default load 

factor of 0.43 must be used. 

• The replacement load factor should never exceed 100 percent in cases where the 

replacement engine is significantly smaller than the existing engine 

• Baseline and reduced engine emission factors are listed in Table B-12 of 

Appendix B. 

• For off-road equipment capable of operation with a new certified on-road engine 

instead of a new off-road engine (i.e., yard hostlers, yard goats), emission benefits 

from the baseline engine will be based on an on-road engine. If an applicant 

provides sufficient documentation to show that past practices involve predominantly 

the use of off-road engines in yard hostlers, then an off-road engine emission factor 

baseline can be used. 

• For new purchases of off-road equipment powered by an on-road engine, emission 

benefits relative to the baseline engine are calculated based on on-road engine 

emission factors. If an applicant provides ARB with documentation showing that in 

past practice, the fleet has been powered by off-road engines, then the baseline 

emission may be calculated using the off-road engine emission factors. 

• For calculations based on fuel consumption, use the default energy consumption 

factor (ECF) of 18.5 bhp-hr/gallon. 

• Default project life 

 Default 

Off-road new purchase 10 years 
D-31 EXAMPLE CALCULATIONS 

Off-road repower 7 years 

Off-road repower and retrofit 5 years 

Retrofit 5 years 

Project life beyond the default project life may be submitted with documentation for 

approval by ARB. 

• Applicants may claim ROG emission reductions from DECS if hydrocarbon emission 

reductions for that technology are obtained from the ARB’s retrofit website at: 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. For the Carl Moyer Program, ROG 

emission reductions will be credited at the 25 percent, 50 percent, and 85 percent 

reduction levels. To calculate emission reductions of ROG for the Carl Moyer 

Program, applicants should use the percentage reduction of hydrocarbons from the 

ARB’s retrofit website to determine the appropriate "level" of emission reductions. 

For example, a technology that provides a 40 percent emission reduction of 

hydrocarbons would be permitted to apply a 25 percent reduction in ROG emissions 

for determining eligibility and grant amount in the Carl Moyer Program. 

B. Examples 

Example 1 – Repower with a Tier 2 Engine and Retrofit with a Level 3 DECS 

A construction company wants to repower an uncontrolled scraper with a Tier 2 engine. 

The baseline engine is a 300 hp 1987 Caterpillar 3306 that operates for 1,500 hours per 

year and would cost $11,500 to rebuild. The applicant is proposing to install a 300 hp 

2004 Caterpillar C9 that costs $80,000. This equipment operates 100 percent of the 

time in California and has a project life of 5 years. A Level 3 diesel particulate filter has 

been verified for use on a 2004 Caterpillar C9 engine and has a cost of $15,000. Since 

installation of a retrofit device is required for off-road projects if available and feasible, 

the cost-effectiveness of the project including the installation of the DECS must be 

determined. 

Baseline Technology Information: 

• Engine: 1987 Caterpillar 3306 

• HP (application): 300 

• Hours of operation (application): 1,500 

• Cost of rebuild (quote provided with application): $11,500 

• Load factor (Table B-13): 0.72 

• Emission factors (Table B-12): 10.23 g/bhp-hr NOx; 1.01 g/bhp-hr ROG; 

0.382 g/bhp-hr PM10 

Reduced Technology Information: 

• Engine: 2004 Caterpillar C9 (Executive Order U-R-001-0247; Engine family 

4CPXL08.8HSK) 

• HP (application): 300 

• Hours of operation (application): 1,500 

• Cost of new engine (quote provided with application): $80,000 
D-32 EXAMPLE CALCULATIONS 

• Load factor (Table B-13): 0.72 

• Emission factors (Table B-12): 3.79 g/bhp-hr NOx; 0.12 g/bhp-hr ROG; 

0.088 g/bhp-hr PM10 

• Percent operating in California (application): 100 percent 

• Retrofit: Level 3 verified reductions: 85 percent PM10 

• Cost of retrofit (quote provided with application): $15,000 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions based on Hours of Operation (tons/yr) 

1. Annual NOx baseline technology emissions 

10.23 g/bhp-hr *300 hp*0.72*1500 hr*(ton/907,200 g) = 3.65 tons/yr NOx 

2. Annual NOx reduced technology emissions 

3.79 g/bhp-hr *300 hp*0.72*1500 hr*(ton/907,200 g) = 1.35 tons/yr NOx 

3. Annual ROG baseline technology emissions 

1.01 g/bhp-hr *300 hp* 0.72*1500 hr*(ton/907,200 g) = 0.36 tons/yr ROG 

4. Annual ROG reduced technology emissions 

0.12 g/bhp-hr *300 hp*0.72*1500 hr*(ton/907,200 g) = 0.04 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

0.382 g/bhp-hr *300 hp*0.72*1500 hr*(ton/907,200 g) = 0.136 tons/yr PM10 

6. Annual PM10 reduced technology emissions 

0.088 g/bhp-hr *300 hp*0.72*1500 hr*(ton/907,200 g) = 0.031 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOx = 3.65 tons/yr - 1.35 tons/yr = 2.30 tons/yr NOx 

• Emission benefits ROG = 0.36 tons/yr - 0.04 tons/yr = 0.32 tons/yr ROG 

• Emission benefits PM10 = 0.136 tons/yr - 0.031 tons/yr = 0.105 tons/yr PM10 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Retrofits 

 0.031 tons/yr PM10 * 0.85 = 0.026 tons/yr PM10 

Total PM10 Emission Benefits 

 0.105 tons/yr + 0.026 tons/yr = 0.131 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

2.30 tons/yr + 0.32 tons/yr + 20(0.131 tons/yr) = 5.24 weighted tons/yr

Annualized Cost: 

Project Life: 5 years 

CRF (Table B-1): = 0.225 

Formula C-14: Incremental Cost 

$95,000 - $11,500 = $83,500 

Formula C-12: Annualized Cost 

 0.225 * $83,500 = $18,788 
D-33 EXAMPLE CALCULATIONS 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($18,788/yr)/(5.24 weighted tons/yr) 

= $3,585/tons of weighted surplus emissions reduced

Example 2 – New Purchase 

An applicant wants to purchase a new yard tractor with an LNG 250 hp on-road engine 

certified to ARB’s Heavy Duty Optional Standard (2004 Cummins C Gas Plus 8.3 L) at a 

cost of $96,800. The applicant has provided documentation that they would normally 

have purchased a yard tractor with a 2004 250 hp Tier 2 off-road diesel engine at a cost 

of $61,250. The annual hours of operation is 1,250 hours, the equipment operates 

100 percent of the time in California, and has a project life of 10 years. The default load 

factor is 0.43. 

Baseline Technology Information: 

• Engine: 2004 Tier 2 off-road diesel engine 

• HP (application): 250 

• Annual hours of operation (application): 2,000 

• Default load factor: 0.43 

• Cost of new equipment (quote provided with application): $61,250 

• Emission factors (Table B-12): 4.15 g/bhp-hr NOx; 0.12 g/bhp-hr ROG; 

0.088 g/bhp-hr PM10 

Reduced Technology Information: 

• Engine (application): 2004 Cummins C Gas Plus (Executive Order A-021-0362) 

• HP (application): 250 

• Annual hours of operation (application): 2,000 

• Default load factor: 0.43 

• Cost of new equipment (quote provided with application): $96,800 

• Converted emission standards (Table B-2): 1.44 g/bhp-hr NOx; 

0.030 g/bhp-hr PM10 

• Percent operating in California (application): 100 percent 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions based on hours of Operation (tons/yr) 

1. Annual NOx baseline technology emissions 

4.15 g/bhp-hr *250 hp*0.43*2,000 hr*(ton/907,200 g) = 0.98 tons/yr NOx 

2. Annual NOx reduced technology emissions 

1.44 g/bhp-hr *250 hp*0.43*2,000 hr*(ton/907,200 g) = 0.34 tons/yr NOx 

3. Annual PM10 baseline technology emissions 

0.088 g/bhp-hr *250 hp*0.43*2,000 hr*(ton/907,200 g) = 0.021 tons/yr PM10 

4. Annual PM10 reduced technology emissions 

0.030 g/bhp-hr *250 hp*0.43*2,000 hr*(ton/907,200 g) = 0.007 tons/yr PM10 
D-34 EXAMPLE CALCULATIONS 

ROG emission factors not available for reduced technology therefore ROG emission 

reductions cannot be calculated. 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOx =0.98 tons/yr - 0.34 tons/yr = 0.64 tons/yr NOx 

• Emission benefits PM10= 0.021 tons/yr - 0.007 tons/yr = 0.014 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.64 tons/yr + 20(0.014 tons/yr) = 0.92 weighted tons/yr 

Annualized Cost: 

Project Life: 10 years 

CRF (Table B-1): = 0.123 

Formula C-14: Incremental Cost 

$96,800 - $61,250 = $35,550 

Formula C-12: Annualized Cost 

 0.123 * 35,550 = $4,373/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($4,373/yr)/ (0.92 weighted tons/yr) 

= $4,753/tons of weighted surplus emissions reduced

Example 3 – Auxiliary Engine Repower 

An applicant wants to repower the auxiliary engine of a street sweeper with a Tier 2 

engine. The baseline engine is a Tier 1 200 hp engine that consumes an estimated 

4,500 gallons fuel per year and would cost $7,000 to rebuild. The applicant is proposing 

to install a 200 hp Tier 2 engine that costs $35,000. This equipment operates 

100 percent of the time in California and has a project life of 7 years. No retrofit device 

has been verified for this engine or equipment. 

Baseline Technology Information: 

• Engine (application): Tier 1 off-road diesel engine 

• HP (application): 200 (not used for calculation, but used to determine appropriate 

emission factors) 

• Annual fuel consumption (application): 4,500 

• Cost of rebuild (quote provided with application): $7,000 

• Energy consumption factor: 18.5 bhp-hr/gal 

• Emission factors (Table B-12): 5.93 g/bhp-hr NOx; 0.38 g/bhp-hr ROG; 

0.120 g/bhp-hr PM10 
D-35 EXAMPLE CALCULATIONS 

Reduced Technology Information: 

• Engine (application): Tier 2 off-road diesel engine 

• HP (application): 200 (not used for calculation, but used to determine appropriate 

emission factors) 

• Annual fuel consumption (application): 4,500 gallons 

• Cost of new equipment (quote provided with application): $35,000 

• Energy consumption factor: 18.5 bhp-hr/gal 

• Emission factors (Table B-12): 4.15 g/bhp-hr NOx; 0.12 g/bhp-hr ROG; 

0.088 g/bhp-hr PM10 

• Percent operating in California (application): 100 percent 

Emission Reduction Calculations: 

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr) 

1. Annual NOx baseline technology emissions 

5.93 g/bhp-hr *18.5 bhp-hr/gal *4,500 gal*(ton/907,200 g) = 0.54 tons/yr NOx 

2. Annual NOx reduced technology emissions 

4.15 g/bhp-hr *18.5 bhp-hr/gal *4,500 gal*(ton/907,200 g) = 0.38 tons/yr NOx 

3. Annual ROG baseline technology emissions 

0.38 g/bhp-hr *18.5 bhp-hr/gal *4,500 gal*(ton/907,200 g) = 0.03 tons/yr ROG 

4. Annual ROG reduced technology emissions 

0.12 g/bhp-hr *18.5 bhp-hr/gal *4,500 gal*(ton/907,200 g) = 0.01 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

0.120 g/bhp-hr *18.5 bhp-hr/gal *4,500 gal*(ton/907,200 g) = 0.011 tons/yr PM10 

6. Annual PM10 reduced technology emissions 

0.088 g/bhp-hr *18.5 bhp-hr/gal *4,500 gal*(ton/907,200 g) = 0.008 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOx = 0.54 tons/yr - 0.38 tons/yr = 0.16 tons/yr NOx 

• Emission benefits ROG = 0.03 tons/yr - 0.01tons/yr = 0.02 tons/yr ROG 

• Emission benefits PM10 = 0.011 tons/yr -0.008 tons/yr = 0.003 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.16 tons/yr + 0.02 tons/yr + 20(0.003 tons/yr) = 0.24 weighted tons/yr 

Annualized Cost: 

Project Life: 7 years 

CRF (Table B-1): = 0.167 

Formula C-14: Incremental Cost 

$35,000 - $7,000 = $28,000 

Formula C-12: Annualized Cost 

 0.167 * $28,000 = $4,676 
D-36 EXAMPLE CALCULATIONS 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($4,676/yr/ (0.24 weighted tons/yr) 

= $19,483/tons of weighted surplus emissions reduced

The cost-effectiveness for this example is greater than the $14,300 per weighted ton 

cost-effectiveness requirement. In order to meet the $14,300 per weighted ton 

cost-effectiveness requirement, this project would only qualify for a fraction of the 

incremental cost $20,551. This amount is determined by multiplying the maximum 

allowed cost --effectiveness by the estimated annual emission reductions and divided 

by the capital recovery factor: 

($14,300 * 0.24)/0.167 = $20,551 

Example 4 – Retrofit of a Tier 1 Engine with a Level 2 DECS 

A Level 2 diesel oxidation catalyst with emulsified fuel has been verified for use on a 

yard tractor with a Tier 1 110 hp 2002 Case 4TA-390 engine. The cost of installing the 

retrofit is $2,000 and is verified for 50 percent reductions of PM10 and 15 percent 

reductions of NOx. The yard tractor consumes 5,000 gallons of fuel per year. There is 

an incremental cost for the fuel of $0.20/ gallon that is eligible for funding with match 

funds by the district. The incremental cost was calculated with information provided 

from the applicant (i.e. quote from distributor). Retrofit projects have a maximum project 

life of 5 years. 

Baseline Technology Information: 

• Engine: 2002 Case 4TA-390 

• Gallons consumed (application): 5,000 gal/yr 

• Cost: $0 

• Energy consumption factor: 18.5 bhp-hr/gal 

• Emission factors (Table B-12): 6.54 g/bhp-hr NOx; 0.304 g/bhp-hr PM10 

 

Reduced Technology Information: 

• Level 2 verified reductions: 15 percent NOx; 50 percent PM10 

• Cost of retrofit (quote provided with application): $2,000 

• Percent operating in California (application): 100 percent 

Emission Reduction Calculations: 

Formula C-6: Estimated Annual Emissions based on Fuel Consumption using Emission 

Factors or Converted Emission Standard (tons/yr) 

1. Annual NOx baseline technology emissions 

6.54 g/bhp-hr * 5,000 gal* 18.5 bhp-hr/gal *(ton/907,200 g) = 0.67 tons/yr NOx 

2. Annual PM10 baseline technology emissions 

0.304 g/bhp-hr * 5,000 gal * 18.5 bhp-hr/gal *(ton/907,200 g) = 0.031 tons/yr PM10 
D-37 EXAMPLE CALCULATIONS 

Formula C-11: Annual Surplus Emission Reductions by Pollutant (tons/yr) for retrofits 

• 0.67 tons/yr * 0.15 = 0.10 tons/yr NOx 

• 0.031 tons/yr * 0.50 = 0.016 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.10 tons/yr + 0 tons/yr + 20(0.016 tons/yr) = 0.42 weighted tons/yr 

Annualized Cost: 

Project Life: 5 years 

CRF (Table B-1): = 0.225 

Formula C-14: Incremental Cost 

$2,000 - $0 = $2,000 

Formula C-12: Annualized Cost 

0.225 * $2,000 = $450 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($450/yr)/(0.42 weighted tons/yr) 

= $1,071/tons of weighted surplus emissions reduced

Calculations with incremental cost of fuel paid for with district funds (if district 

chooses to provide funding for increased fuel cost)

5,000 gal/ yr * 5 years project life * $0.20/gal = $5,000 

District may pay up to $5,000 for incremental cost of fuel. 

Annualized Cost: 

Project Life: 5 years 

CRF (Table B-1): = 0.225 

Formula C-14: Incremental Cost 

($2,000 + $5,000) - $0 = $7,000 

Formula C-12: Annualized Cost 

0.225 * $7,000 = $1,575 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($1,575/yr)/(0.34 weighted tons/yr) 

= $4,632/tons of weighted surplus emissions reduced
D-38 EXAMPLE CALCULATIONS 

VI. Large Spark-Ignition Off-Road Equipment 

Example calculations will be included once project criteria are developed. 
D-39 EXAMPLE CALCULATIONS 

VII. Ground Support Equipment 

Sample calculations will be added once project criteria are developed. 
D-40 EXAMPLE CALCULATIONS 

VIII. Locomotives 

This section provides four examples of calculations for determining cost-effectiveness of 

surplus emission reductions for locomotive projects. 

A. General Criteria for Locomotive Cost-Effectiveness Calculations 

• Baseline emissions for a locomotive engine repower are based upon federal 

emission requirements for engine remanufacture (see Chapter VIII, Section III) and 

the corresponding emission rates in Table B-16. Baseline costs for a locomotive 

engine repower equal the actual remanufacture cost or $50,000, whichever is 

greater. 

• For the purposes of the Carl Moyer Program, an alternative technology switcher is 

defined as a hybrid (e.g., Green Goat) or multiple engine switcher in which an 

existing locomotive chassis is significantly refurbished with a new engine, batteries, 

electronic controls, and/or other equipment. An alternative technology switcher must 

meet Tier 2 locomotive emission standards for PM and hydrocarbons and be 

30 percent cleaner than Tier 2 locomotive emission standards for NOx. An 

alternative technology switcher project is considered a new locomotive purchase. 

• Baseline emissions for an alternative technology switcher project reflect Tier 0 

emission rates for Class I locomotives and uncontrolled emission rates for Class III 

locomotives. The cost of an alternative technology switcher eligible for Carl Moyer 

Program funding shall not exceed 60 percent of the total cost of the new switcher for 

Class I locomotives, and 80 percent of the total cost of the new switcher for Class III 

locomotives. 

• Baseline emissions and costs for a new locomotive purchase project which is not an 

alternative technology switcher reflect Tier 2 emission rates and the cost of a new 

Tier 2 locomotive, respectively. 

• Locomotive repower projects must achieve a 15 percent NOx reduction beyond 

existing emission levels. 

• All locomotive purchase and repower projects (except alternative technology 

switchers) must include purchase and installation of an automatic engine start-stop 

(AESS) ILD to reduce unnecessary engine idling if the locomotive is not already 

equipped with such a device and AESS installation is technically feasible. 

• If not already required by a rule, regulation, MOU, or other legal mandate, the 

purchase and installation cost of an AESS is eligible for Carl Moyer Program 

funding, subject to the following limitations: 

− The Carl Moyer Program may provide actual equipment costs up to a 

maximum of $8,000 for a locomotive-specific AESS. 
D-41 EXAMPLE CALCULATIONS 

− The Carl Moyer Program may provide the lower amount of actual installation 

costs of the AESS, up to a maximum of $3,400. 

− AESS emission reductions are calculated by applying the ILD factors in 

Table B-17 to the reduced engine emissions. 

• Because of uncertainty in locomotive load factors, locomotive project activity must 

be based upon annual fuel consumption. 

• The energy consumption rate for a locomotive engine is 20.8 bhp-hr per gallon. The 

energy consumption rate for an on- or off-road engine used in a locomotive 

application is 18.5 bhp-hr per gallon. 

• Class I freight locomotive projects in all air districts other than the South Coast must 

have a minimum project life of ten years. All other locomotive projects have a 

minimum project life of three years. 

• The maximum project life for a locomotive project is 20 years. 

• The baseline emission rates used to determine emission reductions and 

cost-effectiveness for locomotives subject to the South Coast MOU reflect the Tier 2 

locomotive emission factors for line-haul and switch locomotives identified in 

Table B-16. 

• Benefits of an AESS are reflected by applying the ILD factor to the newer locomotive 

engine only if: 1) the project locomotive is operated by a Class 3 railroad or Amtrak; 

2) the baseline engine does not have a functioning AESS; and 3) a functioning 

AESS is to be installed on the project locomotive. The ILD factor is never used to 

calculate the cost-effectiveness of new locomotive purchase projects or for Class 1 

locomotive projects (since Class 1 locomotives are required to install an AESS as 

part of the Statewide Locomotive MOU). The ILD emission reduction factor is found 

in Table B-17. Example 1 utilizes the ILD factor to calculate the costeffectiveness of a Class 3 locomotive repower. 

• For alternative technology switcher projects, fuel consumption for the new 

locomotive may differ from baseline fuel consumption if the new locomotive fuel use 

is sufficiently documented to ARB and air district staff. 

B. Examples 

Example 1 – Switch Locomotive Engine Repower (Class III Railroad) 

A Class III railroad operator opts to replace an existing 1971 model year switch 

locomotive engine with a new 2006 model year Tier 2 locomotive engine. The existing 

locomotive consumes 40,000 gallons of fuel per year. The cost to rebuild the existing 

engine is $48,000, while the cost to purchase and install the new engine is $350,000. 

The cost to purchase an automatic engine start-stop ILD is $8,000, while installation of 
D-42 EXAMPLE CALCULATIONS 

the device costs $3,000. The railroad company will commit to a 10 year project life. 

Emission reductions are calculated as follows: 

Baseline Technology Information:

• Locomotive model year (application): 1971 

• Locomotive emission rate (Table B-16): 15.66 g/bhp-hr NOx, 0.99 g/bhp-hr ROG, 

0.396 g/bhp-hr PM10 

• Activity (application): 40,000 gal/year 

• Energy consumption factor = 20.8 bhp-hr/gal 

Reduced Technology Information:

• Engine model year (application): 2006 

• Emission rate (Table B-16): 6.57 g/bhp-hr NOx, 0.51 g/bhp-hr ROG, 

0.189 g/bhp-hr PM10 

• Activity (application): 40,000 gal/year 

• Energy consumption factor = 20.8 bhp-hr/gal 

• ILD emission reduction factor (Table B-17): 0.90 

Emission Reduction Calculations:

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr): 

1. Annual NOx baseline technology emissions 

(15.66 g/bhp-hr*40,000 gal/yr*20.8 bhp-hr/gal)*(ton/907,200g) 

= 14.36 ton/yr NOx 

2. Annual NOx reduced technology emissions 

(6.57 g/bhp-hr*40,000 gal/yr*20.8 bhp-hr/gal*0.90)*(ton/907,200g) 

= 5.42 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(0.99 g/bhp-hr *40,000 gal/yr*20.8 bhp-hr/gal)*(ton/907,200g) 

= 0.91 ton/yr ROG 

4. Annual ROG reduced technology emissions 

(0.51 g/bhp-hr*40,000 gal/yr*20.8 bhp-hr/gal *0.90)*(ton/907,200g) 

= 0.42 ton/yr ROG 

5. Annual combustion PM10 baseline technology 

(0.396 g/bhp-hr*40,000 gal/yr*20.8 bhp-hr/gal)*(ton/907,200g) 

= 0.363 ton/yr PM10 

6. Annual combustion PM10 reduced technology emissions 

(0.189 g/bhp-hr*40,000 gal/yr*20.8 bhp-hr/gal *0.90)*(ton/907,200g) 

= 0.156 ton/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Repowers 

and New Purchases 

• NOx emission benefits = 14.36 tons/yr – 5.42 tons/yr = 8.94 tons/yr NOx 

• ROG emission benefits = 0.91 tons/yr - 0.42 tons/yr = 0.49 tons/yr ROG 

• PM10 emission benefits= 0.363 tons/yr - 0.156 tons/yr = 0.207 tons/yr PM10 
D-43 EXAMPLE CALCULATIONS 

Formula C-2: Annual Weighted Surplus Emission Reductions 

8.94 tons/yr + 0.49 tons/yr + 20(0.207 tons/yr) = 13.57 weighted tons/yr

Annualized Cost: 

Project Life: 10 years 

CRF (Table B-1): = 0.123 

Formula C-14: Incremental Cost 

($350,000 + $11,000) - $50,000 = $311,000 

Formula C-12: Annualized Cost 

 0.123 * $311,000 = $38,253/yr 

Cost-Effectiveness:

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($38,253/yr)/(13.57 weighted tons/yr) 

= $2,819/tons of weighted surplus emissions reduced

Example 2 – Line-Haul Locomotive Engine Repower (Class I Railroad) 

A Class I railroad operator opts to replace his existing 1976 line-haul locomotive engine 

with a new 2006 model year Tier 2 locomotive engine. Based on the fuel receipts, it is 

determined that the existing and new locomotive engines will consume 75,000 gallons 

of fuel per year. The cost to rebuild the existing engine is $65,000, while the cost of the 

new engine plus installation is $390,000. The railroad will commit to a 20 year project 

life. Emission reductions are calculated as follows: 

Baseline Technology Information:

• Locomotive model year (application): 1976 

• Emission rate (Table B-16): 7.74 g/bhp-hr NOx, 0.47 g/bhp-hr ROG, 

0.288 g/bhp-hr PM10 

• Activity (application): 75,000 gal/year 

• Energy consumption factor = 20.8 bhp-hr/gal 

Reduced Technology Information:

• Engine model year (application): 2006 

• Emission rate (Table B-16): 4.50 g/bhp-hr NOx, 0.26 g/bhp-hr ROG, 

0.153 g/bhp-hr PM10 

• Activity (application): 75,000 gal/year 

• Energy consumption factor = 20.8 bhp-hr/gal 
D-44 EXAMPLE CALCULATIONS 

Emission Reduction Calculations:

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr): 

1. Annual NOx baseline technology emissions 

(7.74 g/bhp-hr * 20.8 bhp-hr/gal * 75,000 gal/yr) *(ton/907,200g) 

= 13.31 ton/yr NOx 

2. Annual NOx reduced technology emissions 

(4.50 g/bhp-hr * 20.8 bhp-hr/gal * 75,000 gal/yr) *(ton/907,200g) 

= 7.74 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(0.47 g/bhp-hr * 20.8 bhp-hr/gal * 75,000 gal/yr) *(ton/907,200g) 

= 0.81 ton/yr ROG 

4. Annual ROG reduced technology emissions 

(0.26 g/bhp-hr * 20.8 bhp-hr/gal * 75,000 gal/yr) *(ton/907,200g) 

= 0.45 ton/yr ROG 

5. Annual combustion PM10 baseline technology 

(0.288 g/bhp-hr * 20.8 bhp-hr/gal * 75,000 gal/yr) *(ton/907,200g) 

= 0.495 ton/yr PM10 

6. Annual combustion PM10 reduced technology emissions 

(0.153 g/bhp-hr * 20.8 bhp-hr/gal * 75,000 gal/yr) *(ton/907,200g) 

= 0.263 ton/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOx = 13.31 tons/yr - 7.74 tons/yr = 5.57 tons/yr NOx 

• Emission benefits ROG = 0.81 tons/yr - 0.45 tons/yr = 0.36 tons/yr ROG 

• Emission benefits PM10 = 0.495 tons/yr - 0.263 tons/yr = 0.232 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

5.57 tons/yr + 0.36 tons/yr + 20(0.232 tons/yr) = 10.57 weighted tons/yr

Annualized Cost: 

Project Life: 20 years 

CRF (Table B-1): = 0.074 

Formula C-14: Incremental Cost 

$390,000 - $65,000 = $325,000 

Formula C-12: Annualized Cost 

0.074 * $325,000 = $24,050/yr 

Cost-Effectiveness:

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($24,050/yr)/(10.57 weighted tons/yr) 

= $2,275/tons of weighted surplus emissions reduced
D-45 EXAMPLE CALCULATIONS 

Example 3 – Hybrid Switch Locomotive Purchase (Class I Railroad) 

A Class I railroad has the opportunity to purchase a locomotive frame refurbished with 

an 800 horsepower Tier 2 certified off-road engine. Because the project is a hybrid 

locomotive project, and involves significantly refurbishing the existing locomotive frame 

with a new battery and other equipment, the project is considered a new locomotive 

purchase. A typical switcher with activity similar to that of the new locomotive 

consumes 45,000 gallons fuel per year. The applicant provides documentation to 

demonstrate the new advanced technology switcher will reduce fuel consumption by 

33 percent. The cost of the locomotive project is $1.1 million. The project life is 

10 years. Emission reductions are calculated as follows: 

Baseline Technology Information:

• Baseline locomotive model year: none 

• Baseline emission rates (reflect locomotive Tier 0 emission factors, Table B-16): 

11.34 g/bhp-hr NOx, 0.99 g/bhp-hr ROG, 0.396 g/bhp-hr PM 

• Activity (application): 45,000 gal/year 

• Energy consumption factor = 20.8 bhp-hr/gal 

Reduced Technology Information:

• Engine model year: 2006 

• Reduced emission rates (reflect off-road Tier 2 emission factors, Table B-12): 

3.87 g/bhp-hr NOx, 0.12 g/bhp-hr ROG, 0.088 g/bhp-hr PM10 

• Activity (application): 30,000 gal/year 

• Energy consumption factor = 18.5 bhp-hr/gal 

Emission Reduction Calculations:

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr): 

1. Annual NOx baseline technology emissions 

(11.34 g/bhp-hr * 45,000 gal/yr * 20.8 bhp-hr/gal) *(ton/907,200g) 

= 11.70 ton/yr NOx 

2. Annual NOx reduced technology emissions 

(3.87 g/bhp-hr * 30,000 gal/yr * 18.5 bhp-hr/gal) *(ton/907,200g) 

= 2.37 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(0.99 g/bhp-hr * 45,000 gal/yr * 20.8 bhp-hr/gal) *(ton/907,200g) 

= 1.02 ton/yr ROG 

4. Annual ROG reduced technology emissions 

(0.12 g/bhp-hr * 30,000 gal/yr * 18.5 bhp-hr/gal) *(ton/907,200g) 

= 0.07 ton/yr ROG 

5. Annual combustion PM10 baseline technology 

(0.396 g/bhp-hr * 45,000 gal/yr * 20.8 bhp-hr/gal) *(ton/907,200g) 

= 0.409 ton/yr PM10 
D-46 EXAMPLE CALCULATIONS 

6. Annual combustion PM10 reduced technology emissions 

(0.088 g/bhp-hr * 30,000 gal/yr * 18.5 bhp-hr/gal) *(ton/907,200g) 

= 0.054 ton/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Repowers 

and New Purchases 

• Emission benefits NOx = 11.70 tons/yr – 2.37 tons/yr = 9.33 tons/yr NOx 

• Emission benefits ROG = 1.02 tons/yr - 0.07 tons/yr = 0.95 tons/yr ROG 

• Emission benefits PM10 = 0.409 tons/yr - 0.054 tons/yr = 0.335 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

9.33 tons/yr + 0.95 tons/yr + 20(0.335 tons/yr) = 16.98 weighted tons/yr

Annualized Cost: 

Project Life: 10 years 

CRF (Table B-1): = 0.123 

Formula C-14: Incremental Cost 

$1,100,000 * 0.60 = $660,000 

Formula C-12: Annualized Cost 

 0.123 * $660,000 = $81,180/yr 

Cost-Effectiveness:

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($81,180/yr)/(16.98 weighted tons/yr) 

= $4,781/tons of weighted surplus emissions reduced

Example 4 – Multiple Engine Switcher Purchase (Class III Railroad) 

A Class III railroad operator has the opportunity to purchase a switch locomotive with 

three Tier 3 certified 700 horsepower off-road engines. Because this is a multiple 

engine switcher with new electronics, a new battery, and other components, the project 

is evaluated as a new locomotive purchase. Fuel receipts indicate other switch 

locomotives with the same activity in the rail yard consume 45,000 gallons of fuel per 

year. The cost of the new multiple engine switcher is $975,000. The project life is 

5 years. Emission reductions are calculated as follows: 

Baseline Technology Information:

• Locomotive model year: none 

• Locomotive emission rate (uncontrolled, Table B-16): 15.66 g/bhp-hr NOx, 

0.99 g/bhp-hr ROG, 0.396 g/bhp-hr PM10 

• Activity (application): 45,000 gal/year 

• Energy consumption factor = 20.8 bhp-hr/gal 
D-47 EXAMPLE CALCULATIONS 

Reduced Technology Information:

• Engine model year: 2006 

• Emission rates (reflect off-road Tier 3 emission factors, Table B-12): 

2.32 g/bhp-hr NOx, 0.12 g/bhp-hr ROG, 0.088 g/bhp-hr PM10 

• Activity (application): 45,000 gal/year 

• Energy consumption factor = 18.5 bhp-hr/gal 

Emission Reduction Calculations:

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr): 

1. Annual NOx baseline technology emissions 

(15.66 g/bhp-hr * 45,000 gal/yr * 20.8 bhp-hr/gal) *(ton/907,200g) 

= 16.16 ton/yr NOx 

2. Annual NOx reduced technology emissions 

(2.32 g/bhp-hr * 45,000 gal/yr * 18.5 bhp-hr/gal) *(ton/907,200g) 

= 2.13 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(0.99 g/bhp-hr * 45,000 gal/yr * 20.8 bhp-hr/gal) *(ton/907,200g) 

= 1.02 ton/yr ROG 

4. Annual ROG reduced technology emissions 

(0.12 g/bhp-hr * 45,000 gal/yr * 18.5 bhp-hr/gal) *(ton/907,200g) 

= 0.11 ton/yr ROG 

5. Annual combustion PM10 baseline technology 

(0.396 g/bhp-hr * 45,000 gal/yr * 20.8 bhp-hr/gal) *(ton/907,200g) 

= 0.409 ton/yr PM10 

6. Annual combustion PM10 reduced technology emissions 

(0.088 g/bhp-hr * 45,000 gal/yr * 18.5 bhp-hr/gal) *(ton/907,200g) 

= 0.081 ton/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for Repowers 

and New Purchases 

• Emission benefits NOx = 16.16 tons/yr – 2.13 tons/yr = 14.03 tons/yr NOx 

• Emission benefits ROG = 1.02 tons/yr – 0.11 tons/yr = 0.91 tons/yr ROG 

• Emission benefits PM10 = 0.409 tons/yr – 0.081 tons/yr = 0.328 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

14.03 tons/yr + 0.91 tons/yr + 20(0.328 tons/yr) = 21.50 weighted tons/yr

Annualized Cost: 

Project Life: 5 years 

CRF (Table B-1): = 0.225 

Formula C-14: Incremental Cost 

 $975,000 * 0.80 = $780,000 

Formula C-12: Annualized Cost 

0.225 * $780,000 = $175,500/yr 
D-48 EXAMPLE CALCULATIONS 

Cost-Effectiveness:

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($175,500/yr)/(21.50 weighted tons/yr) 

= $8,163/tons of weighted surplus emissions reduced
D-49 EXAMPLE CALCULATIONS 

IX. Marine Vessels 

This section provides three examples of calculations for determining the 

cost-effectiveness of surplus emission reductions for marine vessel projects. 

A. General Criteria for Marine Vessel Cost-Effectiveness Calculations 

• Engines on marine vessels with wet exhaust systems are eligible for Carl Moyer 

Program funding if the project vessel meets all other applicable program 

requirements. The wet exhaust systems themselves are not eligible for Carl Moyer 

Program funding. A wet exhaust factor of 0.80 must be applied to the baseline and 

reduced emission propulsion and auxiliary engine emission calculations for all 

projects on vessels with wet exhaust systems. 

• Projects must have a minimum project life of three years. 

• The maximum project life for marine vessel projects (equivalent to the average 

engine life reported by U.S. EPA) is as follows: 

Engine displacement <5.0 liter/cyl. 16 years 

Engine displacement >5.0 liter/cyl. 23 years 

Auxiliary engines 17 years 

B. Examples 

Example 1 – Tugboat Propulsion Engine Repower 

A tugboat operator wishes to replace a 1975 model year 1,200 horsepower tugboat 

propulsion engine during the normal overhaul period with a 2006 model year 

1,200 horsepower engine. Both engines have a displacement of 7.0 liters per cylinder. 

The operator documents that the vessel consumes 95,000 gallons of fuel annually 

within California Coastal Waters. The cost to rebuild the old engine is $100,000. The 

cost to purchase and install the new engine and new GPS unit on the vessel are 

$250,000 and $2,500, respectively. The operator commits to a 5 year project life. 

Emission reductions are calculated as follows: 

Baseline Technology Information: 

• Baseline technology (application): 1975 

• Engine horsepower (application): 1,200 hp 

• Engine emission rate (Table B-18): 11.16 g/bhp-hr NOx, 1.14 g/bhp-hr ROG, 

0.382 g/bhp-hr PM10 

• Activity (application): 95,000 gal/yr 

• Engine displacement (application): 7.0 liters/cylinder 

• Fuel consumption rate (Table B-20): 20.8 bhp-hr/gal 

Reduced Technology Information: 

• Reduced technology (application): 2005 

• Engine horsepower (application) = 1,200 hp 
D-50 EXAMPLE CALCULATIONS 

• Engine emission rate (Table B-18): 7.60 g/bhp-hr NOx, 0.82 g/bhp-hr ROG, 

0.274 g/bhp-hr PM10 

• Activity (application): 95,000 gal/yr 

• Fuel consumption rate (Table B-20): 20.8 bhp-hr/gal 

Emission Reduction Calculations: 

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standards (tons/yr) 

1. Annual NOx baseline technology emissions 

(11.16 g/bhp-hr)(95,000 gal/yr)(20.8 bhp-hr/gal)(ton/907,200 g) 

= 24.31 ton/yr NOx 

2. Annual NOx reduced technology emissions 

(7.60 g/bhp-hr * 95,000 gal/yr * 20.8 bhp-hr/gal)(ton/907,200 g) 

= 16.55 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(1.14 g/bhp-hr * 95,000 gal/yr * 20.8 bhp-hr/gal)(ton/907,200 g) 

= 2.48 ton/yr ROG 

4. Annual ROG reduced technology emissions 

(0.82 g/bhp-hr * 95,000 gal/yr * 20.8 bhp-hr/gal)(ton/907,200 g) 

= 1.79 ton/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.382 g/bhp-hr * 95,000 gal/yr * 20.8 bhp-hr/gal)(ton/907,200 g) 

= 0.832 ton/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.274 g/bhp-hr * 95,000 gal/yr * 20.8 bhp-hr/gal)(ton/907,200 g) 

= 0.597 ton/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission reductions = 24.31 tons/yr – 16.55 tons/yr = 7.76 tons/yr NOx 

• ROG emission reductions = 2.48 tons/yr – 1.79 tons/yr = 0.69 tons/yr ROG 

• PM10 emission reductions = 0.832 tons/yr – 0.597 tons/yr= 0.235 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

7.76 + 0.69 +20(0.235) = 13.15 weighted tons/yr 

Annualized Cost: 

Project life = 5 years 

CRF (Table B-1) = 0.225 

Formula C-14: Incremental Cost 

($250,000 + $2,500) - $100,000 = $152,500 

Formula C-12: Annualized Cost 

($152,500 * 0.225) = $34,312/yr 
D-51 EXAMPLE CALCULATIONS 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Surplus Emission Reductions 

($34,312/year)/(13.15 weighted tons/yr) 

= $2,609/ton of weighted surplus emissions reduced 

Example 2 – Fishing Vessel Auxiliary Engine Repower

A charter fishing vessel owner wishes to repower a 125 horsepower 1985 auxiliary 

engine with a new 2005 model year 200 horsepower engine. The new engine has a 

displacement 1.3 liters per cylinder. The vessel owner has documented that the vessel 

auxiliary engine operates for 900 hours annually in California waters. The cost to 

rebuild the existing engine is $2,600. The cost to purchase and install a new engine 

and GPS unit is $52,500. The applicant will commit to a 10 year project life. Emission 

reductions are calculated as follows: 

Baseline Technology Information: 

• Baseline technology (application): 1985 

• Engine horsepower (application): 125 hp 

• Engine emission rate (Table B-18): 10.23 g/bhp-hr NOx, 1.06 g/bhp-hr ROG, 

0.396 g/bhp-hr PM10 

• Activity (application): 900 hr/yr 

• Engine load factor (Table B-19): 0.43 

Reduced Technology Information: 

• Reduced technology (application): 2005 

• Engine horsepower (application) = 200 hp 

• Emission rate (Table B-18): 4.17 g/bhp-hr NOx, 0.39 g/bhp-hr ROG, 

0.160 g/bhp-hr PM10 

• Activity (application): 900 hr/yr 

• Engine displacement (application) = 1.3 liters per cylinder 

• Load adjustment (Formula C-5: Replacement Load Factor): 

= 0.43*(125 hp/200 hp) = 0.27 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions based on Hours of Operation (tons/yr) 

1. Annual NOx baseline technology emissions 

(10.23 g/bhp-hr * 900 hr/yr * 125 hp * 0.43)(ton/907,200 g) 

= 0.55 ton/yr NOx 

2. Annual NOx reduced technology emissions 

(4.17 g/bhp-hr * 900 hr/yr * 200 hp * 0.27)(ton/907,200 g) 

= 0.22 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(1.06 g/bhp-hr * 900 hr/yr * 125 hp * 0.43)(ton/907,200 g) 

= 0.06 ton/yr ROG 

4. Annual ROG reduced technology emissions 

(0.39 g/bhp-hr * 900 hr/yr * 200 hp * 0.27)(ton/907,200 g) 

= 0.02 ton/yr ROG 
D-52 EXAMPLE CALCULATIONS 

5. Annual PM10 baseline technology emissions 

(0.396 g/bhp-hr * 900 hr/yr * 125 hp * 0.43)(ton/907,200 g 

= 0.021 ton/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.14 g/bhp-hr * 900 hrs/year * 200 hp * 0.27)(ton/907,200 g) 

= 0.008 ton/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission reductions = 0.55 tons/yr – 0.22 tons/yr = 0.33 tons/yr NOx 

• ROG emission reductions = 0.06 tons/yr – 0.02 tons/yr = 0.04 tons/yr ROG 

• PM10 emission reductions = 0.021 tons/yr – 0.008 tons/yr= 0.013 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

0.33 tons/yr + 0.04 tons/yr + 20(0.013 tons/yr) = 0.63 weighted tons/yr

Annualized Cost: 

Project life = 10 years 

CRF (Table B-1) = 0.123 

Formula C-14: Incremental Cost 

$52,500 - $2,600 = $49,900 

Formula C-12: Annualized Cost 

($49,900 * 0.123) = $6,137/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

 ($6,137/year)/ (0.63 weighted tons/yr) 

= $9,741/ton of weighted surplus emissions reduced 

Example 3 – Fishing Vessel Propulsion Engine Repower 

(Wet Exhaust System) 

A commercial fishing vessel owner wishes to repower a 1973 250 horsepower 

propulsion engine with a new 2006 model year 250 horsepower engine. The existing 

and replacement engines both have a displacement of 1.4 liters per cylinder. The 

vessel has a wet exhaust system. The vessel owner has documented that the vessel 

propulsion engine consumes 24,000 gallons of fuel annually in California waters. The 

cost to rebuild the existing engine is $3,250. The cost to purchase and install a new 

engine is $51,300. The vessel will be outfitted with a new GPS unit for $2,300. The 

applicant will commit to a 5 year project life. Emission reductions are calculated as 

follows: 

Baseline Technology Information: 

• Baseline technology (application): 1973 

• Engine horsepower (application): 250 hp 
D-53 EXAMPLE CALCULATIONS 

• Engine emission rate (Table B-18): 11.16 g/bhp-hr NOx, 1.14 g/bhp-hr ROG, 

0.396 g/bhp-hr PM10 

• Activity (application): 24,000 gal/yr 

• Engine displacement (application): 1.4 liters/cylinder 

• Fuel consumption rate (Table B-20): 18.5 bhp-hr/gal 

• Wet exhaust emission factor (default): 0.80 

Reduced-Emission Technology Information: 

• Reduced technology (application): 2006 

• Engine horsepower (application): 250 hp 

• Emission rate (Table B-18): 4.17 g/bhp-hr NOx, 0.39 g/bhp-hr ROG, 

0.160 g/bhp-hr PM10 

• Activity (application): 24,000 gal/yr 

• Engine displacement (application): 1.4 liters per cylinder 

• Fuel consumption rate (Table B-20): 18.5 bhp-hr/gal 

• Wet exhaust emission factor (default) = 0.80 

Emission Reduction Calculations: 

Formula C-6: Estimated Annual Emissions based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr) 

1. Annual NOx baseline technology emissions 

(11.16 g/bhp-hr * 24,000 gal/yr * 18.5 bhp-hr/gal * 0.80)(ton/907,200 g) 

= 4.30 ton/yr NOx 

2. Annual NOx reduced technology emissions 

(4.17 g/bhp-hr * 24,000 gal/yr * 18.5 bhp-hr/gal * 0.80)(ton/907,200 g) 

= 1.63 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(1.14 g/bhp-hr * 24,000 gal/yr * 18.5 bhp-hr/gal * 0.80)(ton/907,200 g) 

= 0.45 ton/yr ROG 

4. Annual ROG reduced technology emissions 

(0.39 g.bhp-hr * 24,000 gal/yr * 18.5 bhp-hr/gal * 0.80)(ton/907,200 g) 

= 0.15 ton/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.396 g/bhp-hr * 24,000 gal/yr * 18.5 bhp-hr/gal * 0.80)(ton/907,200 g) 

= 0.155 ton/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.160 g/bhp-hr * 24,000 gal/yr * 18.5 bhp-hr/gal * 0.80)(ton/907,200 g) 

= 0.063 ton/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant for Repowers and 

New Purchases 

• NOx Emission Reductions = 4.30 tons/yr – 1.63 tons/yr = 2.67 tons/yr NOx 

• ROG Emission Reductions = 0.45 tons/yr – 0.15 tons/yr = 0.30 tons/yr ROG 

• PM10 Emission Reductions = 0.155 tons/yr – 0.063 tons/yr 

= 0.092 tons/yr PM10 
D-54 EXAMPLE CALCULATIONS 

Formula C-2: Annual Weighted Surplus Emission Reductions 

2.67 + 0.30 +20(0.092) = 4.81 weighted tons/yr 

Annualized Cost: 

Project life = 5 years 

CRF (Table B-1) = 0.225 

Formula C-14: Incremental Cost 

($51,300 + 2,300) - $3,250 = $50,350 

Formula C-12: Annualized Cost 

$50,350 * 0.225 = $11,328/yr 

Cost Effectiveness: 

Formula C-1: Cost-Effectiveness of Surplus Emission Reductions 

($11,328/year)/(4.81 weighted tons/yr) = 

$2,355/ ton of weighted surplus emissions reduced 
D-55 EXAMPLE CALCULATIONS 

X. Agricultural Sources 

This section provides three examples of calculations for determining the 

cost-effectiveness of surplus emission reductions for agricultural source projects. 

A. General Criteria for Agricultural Source Cost-Effectiveness 

Calculations 

• Projects must have a minimum project life of three years. ARB may approve a 

shorter project life on a case-by-case basis. Projects with shorter lives may be 

subject to additional funding restrictions, such as a lower cost-effectiveness limit or a 

project cost cap. 

• The default project life when determining project benefits for new purchases to 

repowers shall be ten years for electric motors and for engines with documentation. 

The default project life for engines without documentation shall be seven years. 

A longer project life may be used with approval by ARB staff, however, sufficient 

documentation must be provided to ARB that supports the selected project life 

based on actual remaining useful life. 

• In these calculations PM10 refers to combustion particulate matter. 

• Emission reduction calculations may be based on hours of operation or on fuel 

usage. 

• Baseline and reduced technology emission factors are listed in Tables B-12 and 

B-14a of Appendix B. 

• Load factors for selected equipment categories are in Tables B-13 and B-14b of 

Appendix B. 

• For emission reduction calculations based on fuel usage, an energy consumption 

factor must be used. The default energy consumption factor for stationary 

agricultural irrigation pump engines greater than 50 hp is 17.56 bhp-hr/gal. 

B. Examples 

Example 1 - Repower (diesel to diesel) Based on Hours 

Baseline Technology Information: 

• Baseline technology (application): 1977 John Deere JD6466A 

• Engine horsepower (application): 182 hp 

• Activity (application): 3,000 hours per year 

• Load factor (Table B-13): 0.65 

• Emission factors (Table B-12): 11.16 g/bhp-hr NOx; 1.14 g/bhp-hr ROG; 

0.396 g/bhp-hr PM10 
D-56 EXAMPLE CALCULATIONS 

• Baseline rebuild cost (quote provided with application): $3,500 

Reduced Technology Information: 

• Reduced technology (application): 2005 John Deere 6068HF275-225 

• Engine horsepower (application): 184 hp 

• Activity (application): 3,000 hr/yr 

• Load factor (Table B-13): 0.65 

• Emission factors (Table B-12): 4.15 g/bhp-hr NOx; 0.12 g/bhp-hr ROG; 

0.088 g/bhp-hr PM10 

• New engine cost (quote provided with application): $20,320 (includes hour meter) 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions Based on Hours of Operation (tons/yr) 

1. Annual NOx baseline technology emissions 

(11.16 g/bhp-hr * 182 hp * 0.65 * 3,000 hrs)(ton/907,200 g) = 4.37 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(4.15 g/bhp-hr * 184 hp * 0.65 * 3,000 hrs)(ton/907,200 g) = 1.64 tons/yr NOx 

3. Annual ROG baseline technology emissions 

(1.14 g/bhp-hr * 182 hp * 0.65 * 3,000 hrs)(ton/907,200 g) = 0.45 tons/yr ROG 

4. Annual ROG reduced technology emissions 

(0.12 g/bhp-hr * 184 hp * 0.65 * 3,000 hrs)(ton/907,200 g) = 0.05 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.396 g/bhp-hr * 182 hp * 0.65 * 3,000 hrs)(ton/907,200 g) = 0.155 tons/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.088 g/bhp-hr * 184 hp * 0.65 * 3,000 hrs)(ton/907,200 g) = 0.035 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 4.37 tons/yr – 1.64 tons/yr = 2.73 tons/yr NOx 

• ROG emission benefits = 0.45 tons/yr – 0.05 tons/yr = 0.40 tons/yr ROG 

• PM10 emission benefits = 0.155 tons/yr – 0.035 tons/yr = 0.120 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 2.73 tons/yr + 0.40 tons/yr + 20(0.120 tons/yr) = 5.53 weighted tons/yr 

Annualized Cost: 

Project life: 7 years 

CRF (Table B-1): 0.167 

Formula C-14: Incremental Cost 

$20,320 - $3,500 = $16,820 

Formula C-12: Annualized Cost 

0.167 * $16,820 = $2,809/yr 
D-57 EXAMPLE CALCULATIONS 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions 

($2,809/yr)/(5.53 weighted tons/yr) 

= $508/tons of weighted surplus emissions reduced 

The cost-effectiveness for this project is less than $14,300 per weighted ton of 

emissions reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 2 - Repower (diesel to diesel) Based on Fuel Use 

Baseline Technology information:

• Baseline Technology (application): 1979 Cummins NTC 220 

• Engine horsepower (application): 220 hp 

• Annual fuel consumption (application): 8,000 gal/yr 

• Energy consumption factor (default): 17.56 bhp-hr/gal 

• Emission Factors (Table B-12): 11.16 g/bhp-hr NOx; 1.20 g/bhp-hr ROG; 

0.396 g/bhp-hr PM1010 

• Rebuild cost (quote provided with application): $2,500 

Reduced Technology information:

• Reduced Technology (application): 2005 Case I-H PX190 

• Engine horsepower (application): 190 hp 

• Energy consumption factor (default): 17.56 bhp-hr/gal 

• Annual fuel consumption (application): 8,000 gal/yr 

• Emission Factors (Table B-12): 4.15 g/bhp-hr NOx; 0.12 g/bhp-hr ROG; 

0.088 g/bhp-hr PM1010 

• New engine cost (quote provided with application): $16,500 (includes hour meter) 

Emission Reduction Calculations: 

Formula C-6: Estimated Annual Emissions Based on Fuel Consumed using Emission 

Factors or Converted Emission Standard (tons/yr) 

1. Annual NOx baseline technology emissions 

(11.16 g/bhp-hr * 17.56 bhp-hr/gal * 8,000 gal)(ton/907,200 g) = 1.73 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(4.15 g/bhp-hr * 17.56 bhp-hr/gal * 8,000 gal)(ton/907,200 g) = 0.64 tons/yr NOx 

3. Annual ROG baseline technology emissions 

(1.20 g/bhp-hr * 17.56 bhp-hr/gal * 8,000 gal)(ton/907,200 g) = 0.19 tons/yr ROG 

4. Annual ROG reduced technology emissions 

(0.12 g/bhp-hr * 17.56 bhp-hr/gal * 8,000 gal/yr)(ton/907,200 g) = 0.02 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.396 g/bhp-hr * 17.56 bhp-hr/gal * 8,000 gal)(ton/907,200 g) = 0.061 tons/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.088 g/bhp-hr * 17.56 bhp-hr/gal * 8,000 gal/yr)(ton/907,200 g) = 0.014 tons/yr PM10 
D-58 EXAMPLE CALCULATIONS 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 1.73 tons/yr – 0.64 tons/yr = 1.09 tons/yr NOx 

• ROG emission benefits = 0.19 tons/yr – 0.02 tons/yr = 0.17 tons/yr ROG 

• PM10 emission benefits = 0.061 tons/yr – 0.014 tons/yr = 0.047 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 1.09 tons/yr + 0.17 tons/yr + 20(0.047 tons/yr) = 2.20 weighted tons/yr 

Annualized Cost: 

Project life: 7 years 

CRF (Table B-1): 0.167 

Formula C-14: Incremental Cost 

$16,500 - $2,500 = $14,000 

Formula C-12: Annualized Cost 

0.167 * $14,000 = $2,338/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions 

($2,338/yr)/(2.20 weighted tons/yr) 

= $1,063/tons of weighted surplus emissions reduced

The cost-effectiveness for this project is less than $14,300 per weighted ton of 

emissions reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 3 – Natural Gas Repower Based on Hours 

Baseline Technology information: 

• Baseline Technology (application): 1980 Detroit Diesel 8V71 

• Engine horsepower (application): 220 hp 

• Activity (application): 2,000 hours per year 

• Load factor (Table B-13): 0.65 

• Emission Factors (Table B-12): 10.23 g/bhp-hr NOx; 1.08 g/bhp-hr ROG; 

0.396 g/bhp-hr PM10 

• Rebuild cost (quote provided with application): $6,000 

Reduced Technology information: 

• Reduced Technology (application): 2005 Cummins GTA 8.3 

• Engine horsepower (application): 200 hp 

• Activity (application): 2,000 hr/yr 

• Load factor (calculated using Formula C-5): 0.65 * (220 hp/200 hp) = 0.72 

• Emission Factors (Table B-14a): 1.58 g/bhp-hr NOx; 0.13 g/bhp-hr ROG; 

0.060 g/bhp-hr PM10 
D-59 EXAMPLE CALCULATIONS 

• New engine cost (quote provided with application): $29,000 (includes hour meter) 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions Based on Hours of Operation (tons/yr) 

1. Annual NOx baseline technology emissions 

(10.23 g/bhp-hr * 220 hp * 0.65 * 2,000 hrs)(ton/907,200 g) = 3.23 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(1.58 g/bhp-hr * 200 hp * 0.72 * 2,000 hrs)(ton/907,200 g) = 0.50 tons/yr NOx 

3. Annual ROG baseline technology emissions 

(1.08 g/bhp-hr * 220 hp * 0.65 * 2,000 hrs)(ton/907,200 g) = 0.34 tons/yr ROG 

4. Annual ROG reduced technology emissions 

(0.13 g/bhp-hr * 200 hp * 0.72 * 2,000 hrs)(ton/907,200 g) = 0.04 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.396 g/bhp-hr * 220 hp * 0.65 * 2,000 hrs)(ton/907,200 g) = 0.125 tons/yr PM10 

6. Annual PM10 reduced technology emissions 

(0.060 g/bhp-hr * 200 hp * 0.72 * 2,000 hrs)(ton/907,200 g) = 0.019 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• NOx emission benefits = 3.23 tons/yr – 0.50 tons/yr = 2.73 tons/yr NOx 

• ROG emission benefits = 0.34 tons/yr – 0.04 tons/yr = 0.30 tons/yr ROG 

• PM10 emission benefits = 0.125 tons/yr – 0.019 tons/yr = 0.106 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 2.73 tons/yr + 0.30 tons/yr + 20(0.106 tons/yr) = 5.15 weighted tons/yr 

Annualized Cost: 

Project life: 7 years 

CRF (Table B-1): 0.167 

Formula C-14: Incremental Cost 

$29,000 - $6,000 = $23,000 

Formula C-12: Annualized Cost 

0.167 * $23,000 = $3,841/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions 

($3,841/yr)/(5.15 weighted tons/yr) 

= $746/tons of weighted surplus emissions reduced 

The cost-effectiveness for this project is less than $14,300 per weighted ton of 

emissions reduced. This project qualifies for the maximum amount of grant funds 

requested. 
D-60 EXAMPLE CALCULATIONS 

XI. Light-Duty Vehicles 

This section provides an example calculation for determining the cost-effectiveness of 

surplus emission reductions for light-duty vehicle projects. 

A. General Criteria for Light-Duty Vehicle Cost-Effectiveness 

Calculations 

• Emission reductions from VAVR programs shall be calculated in accordance with the 

methodology specified in the ARB’s VAVR regulations. Emission reductions, by 

model year of vehicle retired, are shown in Table 11-2. (The table is also included in 

Appendix B, Tables for Emission-Reduction and Cost-Effectiveness Calculations, at 

Table B-21.) 

• The project life for a vehicle retirement project is three years as specified in the 

ARB’s VAVR regulation. 

• In calculating cost-effectiveness, the total cost is the full cost paid by the district 

using State funds (i.e, the total paid to the enterprise operator to retire a vehicle, not 

just the amount paid to the vehicle owner). 

• Cost-effectiveness is calculated without interim rounding to the annualized cost or 

the annual weighted surplus emission reduction. 

• For these calculations, PM10 refers to combustion PM10. 

B. Examples 

Example 1 - Voluntary Accelerated Vehicle Retirement Project 

A district pays $750 to retire a 1980 model year light-duty vehicle during calendar year 

2006. Please note that the cost of $750 is the total cost paid by the district with 

Carl Moyer Program or AB 923 funds to the enterprise operator to retire the vehicle, not 

just the amount paid to the vehicle owner. 

Emissions Reduction Calculations: 

Table B-21 lists the emission reductions over the 3 year project life in pounds. 

• NOx emission benefit 

= 85 pounds over 3 years (from Table B-21) 

= (85 lb)/[(3 yrs)*(2000 lb/ton)] = 0.0142 tons/yr NOx 

• ROG emission benefit 

= 129 pounds over 3 years (from Table B-21) 

= (129 lb)/[(3 yrs)*(2000 lb/ton)] = 0.0215 tons/yr ROG 
D-61 EXAMPLE CALCULATIONS 

• PM10 emission benefit 

= 1.13 pounds over 3 years (from Table B-21) 

= (1.13 lb)/[(3 yrs)*(2000 lb/ton)] = 0.000188 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.0142 + 0.0215 + 20*(0.000188) = 0.0394 weighted tons/yr 

Annualized Cost: 

Project life: 3 years 

CRF (Table B-1) = 0.360 

Total cost: $750 

Formula C-12: Annualized cost

0.360 * $750 = $270/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton) 

($270/yr)/(0.0394 weighted tons/yr) 

= $6,850/weighted ton of surplus emissions reduced 
D-62 EXAMPLE CALCULATIONS 

XII. Zero-Emission Technologies 

This section provides several examples of calculations for determining the 

cost-effectiveness of surplus emission reductions for zero-emission projects. 

A. General Criteria for Zero-Emission Technology Cost-Effectiveness 

Calculations 

Electrically Driven Agricultural Pumps

• Agricultural pumps that use an electric motor may use a 10 year project life for 

calculating cost effectiveness. 

• All electric-driven agricultural pumps must have a functioning kilowatt-hour meter, or 

other method approved by the local air district, to monitor usage. 

• Participants in the PG&E/SCE rate incentive programs must use Tier 3 engine 

emission factors for calculating reduced technology emissions. 

• Participants in the PG&E/SCE rate incentive programs may use one-half the rebuild 

cost for calculating incremental cost. 

• Participants in the PG&E/SCE rate incentive programs who are replacing a baseline 

Tier 2 engine still under contract with the Carl Moyer Program may use zero rebuild 

cost in calculating incremental cost. 

• For these calculations, PM10 refers to combustion PM10. 

• The minimum project life is three years. 

Electric Idle Reduction

• The actual capital cost, up to $5,500, of an APU may be funded. 

• The installation cost of an APU, including installation of an hour meter, up to a 

maximum of $3,400 per electric motor or fuel cell APU may be funded. 

B. Examples 

Example 1 – Replacing a Diesel Pump Engine with a Electric Pump Motor: Not 

Participating in PG&E/SCE Incentive Program 

An applicant wants to purchase a 2005 GE 5K445FT328, 100 hp (75 kW) electric pump 

motor to replace a 1991 Caterpillar 3116, 155 hp diesel pump engine with uncontrolled 

emissions. The motor costs $26,700; otherwise the applicant would have to rebuild the 

diesel engine at a cost of $7,000. On average, the applicant currently operates the 
D-63 EXAMPLE CALCULATIONS 

diesel pump engine at 65 percent of the maximum load rating for 2,000 hours each 

year. The pump operates 100 percent of the time in California. 

Baseline Technology Information: 

• Engine (application): 1991 Caterpillar 3116, diesel off-road engine (uncontrolled) 

• Engine HP (application): 155 hp 

• Load factor (default for agricultural pumps): 0.65 

• Activity (application): 2,000 hours per year 

• Cost rebuild (quote provided with application): $7,000 

• Emission factors (Table B-12): 7.60 g/bhp-hr NOx; 0.82 g/bhp-hr ROG; 

0.274 g/bhp-hr PM10 

Reduced Technology Information: 

• Engine (application): 2005 GE 5K445FT328, electric motor 

• Engine HP (application): 100 hp (75 kW) 

• Activity (application): 2,000 hours per year 

• Percent operate in California (application): 100 percent 

• Cost of new equipment (quote provided with application): $26,700 

• Emissions: 0 g/bhp-hr NOx; 0 g/bhp-hr ROG; 0 g/bhp-hr PM10 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions Based on Hours of Operation 

1. Annual NOx baseline technology emissions 

(7.60 g/hp-hr *155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 1.69 tons/yr NOx 

2. Annual NOx reduced technology emissions = 0 tons/yr 

3. Annual ROG baseline technology emissions 

(0.82 g/hp-hr *155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.18 tons/yr ROG 

4. Annual ROG reduced technology emissions = 0 tons/yr 

5. Annual PM10 baseline technology emissions 

(0.274 g/hp-hr *155 hp *0.65 * 2,000 hrs)/(907,200 g/ton) = 0.061 tons/yr PM 

6. Annual PM10 reduced technology emissions = 0 tons/yr 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOx = 1.69 tons/yr - 0 tons/yr = 1.69 tons/yr NOx 

• Emission benefits ROG = 0.18 tons/yr - 0 tons/yr = 0.18 tons/yr ROG 

• Emission benefits PM10 = 0.061 tons/yr - 0 tons/yr = 0.013 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 1.69 + 0.18 + 20(0.061) = 3.09 weighted tons/yr 

Annualized Cost: 

Project Life: 10 years 

 CRF (Table B-1) = 0.123 
D-64 EXAMPLE CALCULATIONS 

Formula C-14: Incremental Cost 

 $26,700 – $7,000 = $19,700 

Formula C-12: Annualized Cost 

$19,700 * 0.123 = $2,423/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions 

($/weighted ton) 

($2,423/yr)/(3.09 weighted ton/yr) 

= $784/weighted ton of surplus emissions reduced

The cost-effectiveness for the example is less than $14,300 per weighted ton of 

pollutants reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 2 – Replacing a Diesel Pump Engine with a Electric Pump Motor: 

Applicant Is Participating in PG&E/SCE Incentive Program 

An applicant wants to purchase a 2005 GE 5K445FT328, 100 hp (75 kW) electric pump 

motor to replace a 1991 Caterpillar 3116, 155 hp diesel pump engine with uncontrolled 

emissions. The motor costs $26,700; otherwise the applicant would have to rebuild the 

diesel engine at a cost of $7,000. On average, the applicant currently operates the 

diesel pump engine at 65 percent of the maximum load rating for 2,000 hours each 

year. The pump operates 100 percent of the time in California. The applicant is eligible 

and has been accepted in the PG&E/SCE rate incentive program. 

Baseline Technology Information: 

• Engine (application): 1991 Caterpillar 3116, diesel off-road (uncontrolled) 

• Engine HP (Application): 155 hp 

• Load factor (default for agricultural pumps): 0.65 

• Activity (application): 2,000 hours per year 

• Cost to rebuild (quote provided with application): $7,000 

• Emission factors (Table B-12): 7.60 g/bhp-hr NOx; 0.82 g/bhp-hr ROG; 

0.274 g/bhp-hr PM10 

Reduced Technology Information: 

• Engine (application): 2005 GE 5K445FT328, electric 

• Engine HP (application): 100 hp (75 kW) 

• Activity (application): 2,000 hours per year 

• Percent operate in California (application): 100 percent 

• Cost of new equipment (quote provided with application): $26,700 

• Emissions: Applicant can only claim emission benefits from baseline to a comparable 

Tier 3 engine. 
D-65 EXAMPLE CALCULATIONS 

Electric motor: 0 g/bhp-hr NOx; 0 g/bhp-hr ROG; 0 g/bhp-hr PM 

Tier 3 155 hp diesel engine (Table B-12): 2.32 g/bhp-hr NOx; 0.12 g/bhp-hr ROG; 

0.112g/bhp-hr PM10 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions Based on Hours of Operation 

1. Annual NOx baseline technology emissions 

(7.60 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 1.69 tons/yr NOx 

2. Annual NOx Tier 3 technology emissions 

(2.32 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.52 tons/yr NOx 

3. Annual ROG baseline technology emissions 

(0.82 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.18 tons/yr ROG 

4. Annual ROG Tier 3 technology emissions 

(0.12 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.03 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.274 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.061 tons/yr PM10 

6. Annual PM10 Tier 3 technology emissions 

(0.112 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.025 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOX = 1.69 tons/yr- 0.52 tons/yr = 1.17 tons/yr NOx 

• Emission benefits ROG = 0.18 tons/yr - 0.03 tons/yr = 0.15 tons/yr ROG 

• Emission benefits PM10 = 0.061 tons/yr - 0.025 tons/yr = 0.036 tons/yr PM10 

Formula C.2 – Annual Weighted Surplus Emission Reductions 

 1.17 + 0.15 + 20(0.036) = 2.04 weighted tons/yr 

Annualized Cost: 

Project Life: 10 years 

 CRF (Table B-1) = 0.123 

Formula C-14: Incremental Cost 

$26,700 – ($7,000/2) = $23,200 *Applicant may use one-half rebuild cost for 

baseline, as per criteria 

Formula C-12: Annualized Cost 

$23,200 * 0.123 = $2,854/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions 

($/weighted ton) 

($2,854/yr)/(2.04 weighted ton/yr) 

= $1,399/weighted ton of surplus emissions reduced
D-66 EXAMPLE CALCULATIONS 

The cost-effectiveness for the example is less than $14,300 per weighted ton of 

pollutants reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 3 – Replacing a Diesel Pump Engine with a Electric Pump Motor: 

Applicant Is Participating in PG&E/SCE Incentive Program and 

Replaced Engine Is a CMP-Funded Tier 2 Engine 

An applicant wants to purchase a 2005 GE 5K445FT328, 100 hp (75 kW) electric pump 

motor to replace a Tier 2 155 hp diesel pump engine. The motor costs $26,700. On 

average, the applicant currently operates the diesel pump engine at 65 percent of the 

maximum load rating for 2,000 hours each year. The pump operates 100 percent of the 

time in California. The Tier 2 engine was purchased with Carl Moyer Program funds 

three years ago, and is still under contract. The engine has not reached its rebuild 

interval. The applicant is eligible and has been accepted in the PG&E/SCE rate 

incentive program. 

Baseline Technology Information: 

• Engine (application): 2004 Tier 2 diesel off-road 

• Engine HP (application): 155 hp 

• Load factor(default for agricultural pumps): 0.65 

• Activity (application): 2,000 hours per year 

• Cost rebuild (quote provided with application): $0 

• Emission factors (Table B-12): 4.17 g/bhp-hr NOx; 0.19 g/bhp-hr ROG; 

0.128 g/bhp-hr PM10 

Reduced Technology Information: 

• Engine (application): 2005 GE 5K445FT328, electric 

• Engine HP (application): 100 hp (75 kW) 

• Activity (application): 2,000 hours per year 

• Percent operate in California (application): 100 percent 

• Cost of new equipment (quote provided with application): $26,700 

• Emissions: Applicant can only claim emission benefits from baseline to a comparable 

Tier 3 engine. 

Tier 3 155 hp diesel engine (Table B-12): 2.32 g/bhp-hr NOx; 0.12 g/bhp-hr ROG; 

0.112g/bhp-hr PM10 

Emission Reduction Calculations: 

Formula C-4 - Estimated Annual Emissions based on Hours of Operation 

1. Annual NOx baseline technology emissions 

(4.17 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.93 tons/yr NOx 

2. Annual NOx Tier 3 technology emissions 

(2.32 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.52 tons/yr NOx 

3. Annual ROG baseline technology emissions 
D-67 EXAMPLE CALCULATIONS 

(0.19 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.04 tons/yr ROG 

4. Annual ROG Tier 3 technology emissions 

(0.12 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton) = 0.03 tons/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.128 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton)= 0.028 tons/yr PM10 

6. Annual PM10 Tier 3 technology emissions 

(0.112 g/hp-hr * 155 hp * 0.65 * 2,000 hrs)/(907,200 g/ton)= 0.025 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOX = 0.93 tons/yr- 0.52 tons/yr = 0.41 tons/yr NOx 

• Emission benefits ROG = 0.04 tons/yr - 0.03 tons/yr = 0.01 tons/yr ROG 

• Emission benefits PM10= 0.028 tons/yr - 0.025 tons/yr = 0.003 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.41 tons/yr + 0.01 tons/yr + 20(0.003 tons/yr) = 0.480 weighted tons/yr 

Annualized Cost: 

Project Life: 10 years 

 CRF (Table B-1) = 0.123 

Formula C-14: Incremental Cost 

$26,700 – $0* = $26,700 *Applicant may use a rebuild cost of $0 since the project is 

still under Moyer contract and has not reached a rebuild 

interval. 

Formula C-12: Annualized Cost 

$26,700 * 0.123 = $3,284/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions 

($/weighted ton) 

($3,284/yr)/(0.480 weighted ton/yr) 

= $6,842/weighted ton of surplus emissions reduced

The cost-effectiveness for the example is less than $14,300 per weighted ton of 

pollutants reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 4 – Electric Idle Reduction Package Replaces Main Diesel Engine Idling 

An applicant wants to purchase an electric package that includes an electric HVAC, a 

large alternator, and inverter/charger and a lead acid battery pack. These units will 

replace all idling that uses the truck’s main propulsion engine. The package costs 

$10,000 and another $2,000 for installation. The applicant currently idles his 1999 MY 

truck engine an average of 1,250 hours each year. 
D-68 EXAMPLE CALCULATIONS 

Baseline Technology Information: 

• Main engine model year (application): 1999 

• Annual hours of idling (application): 1,250 

• Main Engine idling emission rate (Table B-9): 171.00 g/hr NOx, 34.28 g/hr ROG, 

g/hr 2.28 PM10

Reduced Technology Information: 

• 110 VAC, 60 Hz HVAC (8300 BTU) ; 270 A alternator; 

lead acid battery pack; inverter/charger (application) 

• Annual hours of idling (application): 1,250 

• Percent operate in California (application): 100 percent

• Cost of new equipment (quote provided with application): $10,000 

• Cost of installation (quote provided with application): $2,000 

• Electric emission rates: 0 g/bhp-hr NOx; 0 g/bhp-hr ROG; 0 g/bhp-hr PM10 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions based on Hours of Operation 

1. Annual NOx baseline technology emissions 

(171.00 g/hr * 1,250 hrs)/(907,200 g/ton) = 0.24 tons/yr NOx 

2. Annual NOx reduced technology emissions = 0 tons/yr NOx 

3. Annual ROG baseline technology emissions 

(34.28 g/hr * 1,250 hrs)/(907,200 g/ton) = 0.05 tons/yr ROG 

4. Annual ROG reduced technology emissions = 0 tons/yr ROG 

5. Annual combustion PM10 baseline technology emissions 

(2.28 g/hr * 1,250 hrs)/(907,200 g/ton) = 0.003 tons/yr PM10 

6. Annual combustion PM10 reduced technology emissions = 0 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by Pollutant (tons/yr) for 

Repowers and New Purchases 

• Emission benefits NOX = 0.24 tons/yr - 0 tons/yr = 0.24 tons/yr NOx 

• Emission benefits ROG = 0.05 tons/yr - 0 tons/yr = 0.05 tons/yr ROG 

• Emission benefits PM10 = 0.003 tons/yr - 0 tons/yr = 0.003 tons/yr PM10 

Formula C-2: Annual Weighted Surplus Emission Reductions 

 0.24 tons/yr + 0.05 tons/yr + 20(0.003 tons/yr) = 0.350 weighted tons/yr 

Annualized Cost: 

Project Life: 5 years 

 CRF (Table B-1) = 0.225 

Formula C-14: Incremental Cost 

 Capital cost: $10,000 CMP will pay up to $5,500, as per guideline criteria 

Installation cost: $2,000 

$5,500 + $2,000= $7,500
D-69 EXAMPLE CALCULATIONS 

Formula C-12: Annualized Cost 

$7,500 * 0.225 = $1,688/yr 

Cost-Effectiveness: 

Formula C-1: Cost-Effectiveness of Weighted Surplus Emission Reductions 

($/weighted ton) 

($1,688/yr)/( 0.350 weighted ton/yr) 

= $4,823/weighted ton of surplus emissions reduced 

The cost-effectiveness for the example is less than $14,300 per weighted ton of 

pollutants reduced. This project qualifies for the maximum amount of grant funds 

requested. 

Example 5 – Purchase of TRU with Electric Standby Option 

The TRU owner proposes to purchase a TRU that is equipped with electric standby in 

lieu of one without this option. This would virtually eliminate TRU engine operation 

while the TRU is at the facility. The TRU owner has submitted records that show his 

fleet of facility-controlled TRUs has operated an average of three hours per day of TRU 

engine run time while at the facility. The incremental cost of the E/S option is $2,000. 

Facility infrastructure would cost $5,000. TRUs operate at the facility 360 days per 

year. The new TRU would be equipped with a 2006 engine rated at 36.2 hp to maintain 

cooling when the truck is not at the facility. 

Baseline Technology

• Engine rating = 36.2 hp 

• Model year = 2006 

• Default load factor = 0.53 

• Emission factors (Table B-12): 4.63 g/bhp-hr NOx, 0.29 g/bhp-hr ROG, 

0.280 g/bhp-hr PM10 

Reduced Technology

• Electric standby = zero emissions 

• Annual TRU engine activity replaced with electric standby = 

(3 hrs/day)(360 days/yr) = 1,080hr/yr 

Emission Reduction Calculations: 

Formula C-4: Estimated Annual Emissions based on hours of Operation (tons/yr) 

1. Annual NOx baseline technology emissions 

(4.63 g/bhp-hp)(36.2 hp)(0.53)(1,080 hrs/yr)(1 ton/907,200g) 

= 0.10 tons/yr NOx 

2. Annual NOx reduced technology emissions 

(0 g/bhp-hr)(36.2hp)(0.53)(1,080hrs)(1 ton/907,200g) 

= 0 ton/yr NOx 

3. Annual ROG baseline technology emissions 

(0.29 g/bhp-hr)(36.20hp)(.53)(1,080 hrs/yr)(1ton/907,200g) 

= 0.007 tons/yr ROG 
D-70 EXAMPLE CALCULATIONS 

4. Annual ROG reduced technology emissions 

(0 g/bhp-hr)(36.2hp)(0.53)(1,080hrs)(1 ton/907,200g) 

= 0 ton/yr ROG 

5. Annual PM10 baseline technology emissions 

(0.280 g/bhp-hp)(36.2 hp)(0.530)(1,080 hrs/yr)(1 ton/907,200g) 

= 0.006 tons/yr tons/yr PM10 

6. Annual PM10 reduced technology emissions 

(0 g/bhp-hp)(36.2 hp)(0.530)(1,080 hrs/yr)(1 ton/907,200g) 

= 0 tons/yr PM10 

Formula C-10: Annual Surplus Emission Reductions by pollutant (tons/yr) for Repowers 

and New Purchases 

• NOx emission benefits = 0.10 tons/yr - 0 tons/yr = 0.10 tons/yr NOx 

• ROG emission benefits = 0.007 tons/yr - 0 tons/yr = 0.007 tons/yr ROG 

• PM10emission benefits = 0.006 tons/yr - 0 tons/yr = 0.006 tons/yr PM10 

Formula C-2, Annual Weighted Surplus Emission Reductions: 

0.10 tons/yr + 0.007 tons/yr + 20(0.006 tons/yr) = 0.227 weighted tons/yr 

Annualized Cost: 

Project Life: 3 years 

CRF (Table B-1): =0.360 

Incremental Cost: =$2,000 

Formula C- 12-Annualized Cost 

0.360 * $2,000 = $720/yr 

Cost Effectiveness: 

Formula C-1 Cost-Effectiveness of Weighted Surplus Emission Reductions ($/ton): 

($720/yr)/(0.227 weighted tons/yr) 

= $3,172/ton of weighted surplus emissions reduced 

The $5,000 cost for electric power plugs cannot be funded by the Carl Moyer Program 

because it is considered infrastructure. The air district may pay for this with district 

match funds. 

This project qualifies for the $2,000 cost of the E/S option. 
APPENDIX E 

DESCRIPTION OF CERTIFICATION AND VERIFICATION 

EXECUTIVE ORDERS
E-1 CERTIFICATION AND VERIFICATION 

APPENDIX E 

DESCRIPTION OF CERTIFICATION AND VERIFICATION 

I. New Engine Certification 

The Air Resources Board (ARB) certifies engines destined for sale in California and 

provides the engine manufacturers with an Executive Order (EO) for each certified 

engine family. An example of an EO is shown in Figure E-1. The EO includes general 

information about the certified engine such as engine family, displacement, horsepower 

rating(s), intended service class, and emission control systems. It also shows the 

applicable certification emission standards as well as the average emission levels 

measured during the actual certification test procedure. For the purpose of the Carl 

Moyer Program, the certification emission standards are used to calculate emission 

reductions. The certification emission standards are shown in the row titled “(DIRECT) 

STD” under the respective “FTP” column headings for each pollutant. For instance, the 

Cummins 8.3 liter natural gas engine illustrated in Figure E-1 was certified to a 

combined oxides of nitrogen plus non-methane hydrocarbon (NOx+NMHC) emission 

standard of 1.8 g/bhp-hr, a carbon monoxide (CO) emission standard of 15.5 g/bhp-hr, 

and a particulate matter (PM) emission standard of 0.03 g/bhp-hr. 

In the case where an EO shows emission values in the rows labeled “AVERAGE STD” 

and/or “FEL”, the engine is certified for participation in an averaging, banking, and 

trading (AB&T) program. AB&T engines (i.e., all FEL-certified engines) are not eligible 

to participate in the CMP for new vehicle purchase projects since emission benefits from 

an engine certified to an FEL level are not surplus emissions. 
E-2 CERTIFICATION AND VERIFICATION 

Figure E-1 

Sample Executive Order 

ARB Executive Order

for Heavy-Duty On-Road Engines
E-3 CERTIFICATION AND VERIFICATION 

II. Retrofit System Verification

The ARB’s verification procedures provide a way to thoroughly evaluate the emission 

reduction capabilities and durability of a variety of emission control strategies as part of 

a retrofit in-use program. It ensures that emission reductions achieved by a control 

strategy are both real and durable and that production units in the field are achieving 

emission reductions which are consistent with their verification. 

The ARB has a verification procedure for in-use strategies to control emissions from 

diesel engines (diesel emission control systems or DECS). The verification procedure 

requires a minimum PM reduction of at least 25 percent. If a diesel emission control 

strategy also reduces NOx emissions by at least 15 percent, that reduction can also be 

verified. Emission control strategies for diesel engines are verified based on a tiered 

verification classification shown in Table E-1 below. It is the responsibility of the diesel 

emission control strategies manufacturer to provide data to verify emission reduction 

claims. The ARB issues Executive Orders for verified emission control strategies 

destined for sale in California. An example of an EO for a retrofit emission control 

system for diesel engines is shown in Figure E-2. 

Applicants may claim ROG emission reductions from DECS if hydrocarbon emission 

reductions for that technology are obtained from the ARB’s retrofit website at: 

http://www.arb.ca.gov/diesel/verdev/verdev.htm. For the Carl Moyer Program, ROG 

emission reductions will be credited at the 25 percent, 50 percent, and 85 percent 

reduction levels. To calculate emission reductions of ROG for the Carl Moyer Program, 

applicants should use the percentage reduction of hydrocarbons from the ARB’s retrofit 

website to determine the appropriate "level" of emission reductions. For example, a 

technology that provides a 40 percent emission reduction of hydrocarbons would be 

permitted to apply a 25 percent reduction in ROG emissions for determining eligibility 

and grant amount in the Carl Moyer Program. 

Table E-1 

Verification Levels for Diesel Emission Control Strategies 

Pollutant Emission Reduction Classification 

< 25% Not Verified 

> 25% Level 1 

PM > 50% Level 2 

> 85%, or 

< 0.01 g/bhp-hr 

Level 3 

< 15% Not Verified NOx 

> 15% Verified in 5% Increments 
E-4 CERTIFICATION AND VERIFICATION 

ARB staff has also developed an interim retrofit verification procedure for large 

spark-ignition engines (LSI). This interim procedure can be used to verify retrofit 

systems to reduce NOx and HC emissions from spark-ignition engines until the interim 

procedure is formally adopted by the ARB. Emission control strategies for LSI engines 

are verified based on a tiered verification classification shown in Table E-2 below. 

Table E-2. LSI Emission Control System Verification Levels 

Classification Percentage Reduction 

(HC+NOx)

Absolute Emissions 

(HC+NOx) 

LSI Level 1 (1) > 25% (2) Not Applicable 

LSI Level 2 (1) > 75%(3) 3.0 g/bhp-hr (3) 

LSI Level 3a (1) > 85% (4) 0.5, 1.0, 1.5, 2.0, 2.5 g/bhp-hr 

LSI Level 3b (5) Not Applicable 0.5, 1.0, 1.5, 2.0 g/bhp-hr 

Notes: 

 (1) Applicable to uncontrolled engines only 

(2) The allowed verified emissions reduction is capped at 25% regardless of 

actual emission test values 

 (3) The allowed verified reduction for LSI Level 2 is capped at 75% or 

3.0 g/bhp-hr regardless of actual emission test values 

(4) Verified in 5% increments, applicable to LSI Level 3a classifications only 

(5) Applicable to emission-controlled engines only 
E-5 CERTIFICATION AND VERIFICATION 

Figure E-2 

Example of an EO for a Retrofit Emission Control System 
E-6 CERTIFICATION AND VERIFICATION 
E-7 CERTIFICATION AND VERIFICATION 
APPENDIX F 

RETROFIT EMISSION CONTROL STRATEGIES 
G-1 RETROFITS 

APPENDIX F 

RETROFIT EMISSION CONTROL STRATEGIES 

All retrofit systems must be verified by ARB in order to qualify for Carl Moyer Program 

funding. Potential compression-ignited (diesel) engine retrofits include diesel oxidation 

catalysts, diesel particulate filters, flow though filters and fuel additives. Potential 

spark-ignited engines include closed-loop fuel control, three-way catalyst, fuel injection, 

or any combination thereof. 

I. Compression-Ignited (Diesel) Engines 

A. Diesel Oxidation Catalysts 

A diesel oxidation catalyst (DOC) reduces carbon monoxide (CO), hydrocarbons (HC), 

and the soluble organic fraction (SOF) of diesel PM through catalytic oxidation. 

Negligible reductions of the solid particle portion of PM also occur. Exhaust gases are 

not filtered, as with a diesel particulate filter (DPF) so the solid particles escape. A DOC 

reduces total PM emissions up to 30 percent. PM emission reductions at this higher 

end are typically associated with engines that emit "wet" PM (i.e., particles that have a 

higher percentage of SOF, unburned or partially burned fuel, adsorbed onto the particle 

surface). Older engines or engines that have less efficient fuel combustion typically 

produce PM with higher SOF. Engines that more efficiently combust the fuel would 

have less SOF adsorbed on the soot particle, so the PM emission reductions would be 

less on a percentage basis. 

B. Passive Diesel Particulate Filters 

A DPF uses a porous substrate to filter out PM particles from the exhaust. DPFs must 

"regenerate" or be cleaned periodically to remove the collected particulate matter. A 

passive DPF has a catalyst coating on the filter surfaces that lowers the PM ignition 

temperature, allowing the collected PM to burn off. Emissions of HC and CO are also 

reduced by catalytic oxidation. This approach is called "passive" regeneration because 

no outside source of energy or intervention is required for regeneration, making it very 

attractive due to its simplicity. 

C. Active Diesel Particulate Filters 

Active DPFs use an external source of energy or external intervention to increase the 

exhaust temperature to the point where PM oxidation can occur, achieving a 

regeneration. Additional heat may be added to the exhaust using electrical power, 

microwaves, or injecting fuel. Another approach uses periodic, short-duration use of an 

intake throttle to reduce the amount of excess air, so the exhaust temperature rises as a 

result of not having to heat the excess air. The temperature of the filter and collected 

PM increases until the PM burns off, at which point the throttle re-opens. Active DPFs 
G-2 RETROFITS 

systems can initiate regeneration when the backpressure on the filter reaches a 

specified level or the operator can initiate a regeneration when a warning light indicates 

backpressure has exceeded a set point. For applications where the engine-out PM is 

relatively high, or the exhaust temperature is relatively cool, active regeneration 

systems may be more effective than a passive DPF. Emission reductions of HC and 

CO can also occur in active DPFs, and to a greater extent if the DPF system uses lightly 

catalyzed surfaces or fuel-borne catalysts to assist in achieving regenerations. 

D. Flow-Through Filters 

Unlike the DPF, in which only the exhaust gases can pass through the substrate, the 

flow-though filter (FTF) does not physically "trap" and accumulate PM. Instead, exhaust 

flows through a medium (such as a wire mesh or metal foils) that has a high density of 

tortuous flow channels, thus giving rise to turbulent flow conditions that favor PM 

oxidation. The medium is typically treated with an oxidizing catalyst that is able to 

reduce emissions of PM, HC, and CO, or the FTF is used in conjunction with a fuel 

borne catalyst (FBC). The filtration efficiency of the FTF is typically lower than that of a 

DPF because unburned PM is not "trapped", but the FTF is less likely to plug under 

unfavorable conditions, such as high PM emissions or low exhaust temperature. 

E. Fuel Additives 

A fuel additive is designed to be added to fuel or fuel systems so that it is present 

in-cylinder during combustion. Fuel additives can reduce the total mass of PM 

emissions, with variable effects on CO, NOx and gaseous HC production. A fuel-borne 

catalyst (FBC) is an additive that is used with diesel fuel to aid in soot removal by 

decreasing the ignition temperature of the carbonaceous exhaust. FBCs can be used 

with passive and active filter systems to improve fuel economy, aid system 

performance, and decrease mass PM emissions. FBC/DPF systems have been verified 

for on-road use in California in medium duty and heavy-duty engines. In addition, 

FBC/DPF systems are in wide spread use in Europe in both on-road and off-road, 

mobile and stationary applications. Use of FBCs with DOCs or FTFs may not be 

verified for use in California since catalytic particle emissions occur and the 

consequences of such emissions are unknown. 

II. Spark-Ignition Engines 

Retrofit refers to modifications or additions made to an engine and/or fuel system such 

that the specifications of the retrofitted engine are not the same as the original engine. 

Retrofits for LSI equipment will likely incorporate advanced automotive-inspired 

emission control technologies that dramatically reduce emissions while still meeting 

operational requirements. These have already been in use on a variety of LSI 

equipment for about 10 years. To qualify for Carl Moyer Program funding, the retrofit 

technology must be verified for sale in California and must comply with established 

durability and warranty requirements. 
G-3 RETROFITS 

A. Three-Way Catalyst 

Three-way catalytic converters have helped manufacturers to meet progressively 

lower-emissions standards. Manufacturers have installed three-way catalysts on 

automobiles for more than 25 years. Advanced three-way catalysts will likely be 

components in new LSI retrofit kit, and have been shown to be robust in research 

demonstrations for the 2001 LSI regulation. 

LSI catalyst volumes are much lower than light duty vehicles - between 40 to 

60 percent of engine displacement. Precious metal loading of the catalytic converter in 

a current LSI application is typically half of that in automotive applications. LSI catalysts 

in retrofits will likely use multi-layered wash coats that increase precious metals 

performance to achieve lower emissions. Due to confined space on forklifts, the 

three-way catalysts are made such that they can be a direct fit replacement of the 

original vehicle silencer. Other LSI equipment will most likely be adaptable to catalyst 

additions. 

B. Closed-Loop Fuel Control System 

Central to automotive emission control systems is the closed-loop fuel control system. 

Since 1980, automotive emission control systems have used a closed-loop fuel control 

system to help reduce emissions. This technology has increasingly been applied to LSI 

retrofit technology in the last 10 years. A closed-loop fuel control system uses sensors 

to monitor exhaust gas concentrations, and feed this information back to an electronic 

control module, which in turn keeps the air to fuel mixture at an optimum level. The 

sensors (usually oxygen sensors) deteriorate over time, causing the system to lose 

emissions reduction ability, but equipment with sensors have indicator lights that can 

alert the operator of an sensor failure so that they can replace the oxygen sensors as 

needed. 

C. Fuel-Injection System 

To help ensure more precise metering of fuel and optimum combustion, carburetors will 

likely be replaced by sequential fuel injection or a more sophisticated regulator/mixer. 

Today's advanced systems must maintain an extremely tight stoichometric air to fuel 

balance during nearly all engine operations because wide fluctuations from the 

stoichiometric position will result in less ability to reduce NOx and hydrocarbons.
APPENDIX G 

DESCRIPTION OF FUNCTIONAL EQUIVALENCY OF 

NON-ORIGINAL EQUIPMENT MANUFACTURER REPOWERS 

AND REBUILT ENGINES FOR USE IN REPOWERS 
G-1 NON-OEM REPOWER AND REBUILD 

Appendix G 

Description of Functional Equivalency of Non-Original Equipment Manufacturer 

Repowers and Rebuilt Engines for use in Repowers 

A repower or an engine rebuild may be performed by the original equipment 

manufacturer (OEM) or a non-OEM. An original equipment manufacturer, for the 

purposes of the Carl Moyer Program, means any person engaged in the manufacturing 

or assembling of new vehicles or equipment for resale under its own brand name. 

These manufactures provide the original product design and materials for the 

equipment assembly and manufacture and are directly responsible for manufacturing 

and modifying the products, making them commercially available, and providing the 

warranty. 

I. Non-Original Equipment Manufacturer Repowers 

The Carl Moyer Program provides funding opportunities for equipment repowers with a 

lower emission engine; like-to-like repowers are not eligible for funding. In accordance 

with the Carl Moyer Program guidelines, a non-OEM repower must be “functionally 

equivalent” to an OEM repower with regard to emissions, durability, and safety. A 

non-OEM repower consists of removing an existing engine and replacing it with a lower 

emission certified engine, however the installer does not use the procedures and/or 

parts specified by the OEM in their repower documentation. The non-OEM repower 

must also maintain the emission performance of the replacement engine in operation. 

A. Requirements to Establish Functional Equivalency 

The following actions are necessary and sufficient for Carl Moyer Program applicants to 

follow when demonstrating functional equivalency. 

The Carl Moyer Program applicant must: 

• Submit to the Air Pollution Control Officer/Executive Officer of the governing air 

district a list of OEM and non-OEM parts to be used in the repower and the 

corresponding components that they replace (if replacing parts). 

• Submit a letter of qualification from the installer who will perform the work. 

• Submit a detailed description of the work to be performed on the equipment 

including necessary engine mapping and drawings and engineering analyses to 

demonstrate safety and durability. 
G-2 NON-OEM REPOWER AND REBUILD 

The following further explain these requirements: 

1. List of Functionally Equivalent Parts 

Carl Moyer Program applicants proposing to perform non-OEM repowers must submit 

to the Air Pollution Control Officer/Executive Officer of the governing air district the 

following information for each repower: 

• The serial number, make, model year and configuration of both the original engine 

and the replacement engine. 

• The component parts list (CPL) or arrangement numbers for both the original engine 

and the replacement engine, including the exhaust and cooling systems if modified 

during the repower. 

• The original equipment (OE) number and description of parts replaced. 

• The replacement part identification number. 

• A statement that all non-OEM replacement parts are functionally equivalent to the 

corresponding OE parts. 

The applicant or the non-OEM installer must also comply with any request from the ARB 

or Air Pollution Control Officer/Executive Officer of the governing air district for any 

additional information, including sample parts for inspection and records required by 

section 2221 (b) of title 13 of the California Code of Regulations. 

2. Letter of Qualification 

Any Carl Moyer Program applicant proposing to perform a non-OEM repower must 

submit a letter of qualification from the installer addressed to the Air Pollution Control 

Officer/Executive Officer of the governing air district. The letter should describe the 

installer’s operations and experience. It must include the following: 

• The name and address(es) of the installer. 

• The length of time the installer has been operating. 

• The number of employees and how many are actually involved in installing engines. 

• The type of heavy-duty equipment it repowers. 

• The number of items it normally repowers annually.

• Background and experience of the owners including education, training and 

certifications; previous heavy-duty engine repowers experience; and any experience 

with an OEM or its franchised dealers. 

• Whether the business specializes in any particular type or make of heavy-duty 

equipment. 

• Whether it has performed work under the Carl Moyer Program; any other state or 

local program; or for any Federal, state or local agency. 

• Whether it has ever been investigated for malpractice or tampering with heavy-duty 

engines and if so, the results of the investigation. 
G-3 NON-OEM REPOWER AND REBUILD 

The letter must be signed by the owner of the business and must include the following 

statement: 

“I affirm that the repower described in the Carl Moyer Program application will use only 

OE parts or non-OE parts from the parts list submitted to the air district. The 

replacement engine will be functionally equivalent from a durability standpoint to one 

offered by the OEM in the same power category and will maintain the emissions 

performance of the replacement engine in operation. Furthermore, the repowered 

equipment will maintain all safety specifications of the original equipment.”

After review of the letter, the air district or ARB may request additional information. 

3. Description of Work to be Performed 

 

The Carl Moyer Program applicant must submit an additional letter describing the 

proposed work or work already performed on the equipment. The letter must confirm 

that the parts used are equivalent to the CPL parts or corresponding arrangement 

number parts. In addition, the letter must include details on required equipment 

modifications with pictures of the equipment and engineering drawings as necessary. 

The letter must also state that the repowered equipment is functionally equivalent from 

a durability standpoint to one offered by the OEM in the same power category and that 

the emission performance of the engine is maintained in operation. Any test data that 

substantiate these emission claims shall be attached or included in the letter. 

 

B. Other Restrictions and Considerations 

The ARB or the district may require emission testing on any piece of equipment, 

whether repowered by an OEM or non-OEM. Emissions testing may be specified prior 

to approval of a project as a condition of the grant, but normally will not be specified 

unless ARB has reason to believe that a proposed repower will not be functionally 

equivalent from an emissions and durability standpoint to an OEM repower. Emissions 

testing may also be required after the project has been completed, in cases where there 

is evidence of malpractice or tampering. Engines that do not achieve the stated 

emission levels may be denied all or part of the requested funding. In cases where the 

money has already been disbursed, the applicant will be responsible for providing an 

acceptable engine or for reimbursing the state for Carl Moyer Program funds expended. 

In addition, other penalties may apply. 

II. Non-Original Equipment Manufacturer Rebuilt Engines for Use in Repowers 

The Carl Moyer Program provides funding opportunities for equipment repowers using 

rebuilt engines. In accordance with the Carl Moyer Program guidelines, a non-OEM 

rebuilt engine must be “functionally equivalent” to an OEM rebuilt engine with regard to 

emissions and durability. 
G-4 NON-OEM REPOWER AND REBUILD 

A. Requirements to Establish Functional Equivalency 

The following actions are necessary and sufficient for Carl Moyer Program applicants to 

follow when demonstrating functional equivalency. 

The Carl Moyer Program applicant must: 

• Submit to the Air Pollution Control Officer/Executive Officer of the governing air 

district a list of non-original equipment parts or to be used in the rebuilt engine and 

the corresponding components that they replace. 

• Submit a letter of qualification from the rebuilder who will perform the work. 

• Submit a detailed description of the work to be performed on the engine. 

The following further explain these requirements: 

1. List of Functionally Equivalent Parts 

Carl Moyer Program applicants proposing to use non-OEM rebuilt engines must submit 

to the Air Pollution Control Officer/Executive Officer of the governing air district the 

following information for each rebuilt engine: 

• The serial number, make, model year and configuration of the original engine. 

• The component parts list (CPL) or arrangement numbers for the original engine. 

• The original equipment (OE) number and description of parts replaced. 

• The replacement part identification number. 

• A statement that all non-OEM replacement parts are functionally equivalent, as 

defined in the equivalency provision by section 2421 (a)(13) of title 13 of the 

California Code of Regulations, to the corresponding OE parts. 

The applicant or the non-OEM replacement part manufacturer must also comply with 

any request from the ARB or Air Pollution Control Officer/Executive Officer of the 

governing air district for any additional information, including sample parts for inspection 

and records required by section 2221 (b) of title 13 of the California Code of 

Regulations. 

2. Letter of Qualification 

Any Carl Moyer Program applicant proposing to use a non-OEM rebuilt engine must 

submit a letter of qualification from the rebuilder addressed to the Air Pollution Control 

Officer/Executive Officer of the governing air district. The letter should describe the 

rebuilder’s operations and experience. It must include the following: 

• The name and address(es) of the rebuilder. 

• The length of time the rebuilder has been operating. 

• The number of employees and how many are actually involved in rebuilding engines. 
G-5 NON-OEM REPOWER AND REBUILD 

• The type of heavy-duty parts it rebuilds (full engines, fuel systems, blocks, etc.). 

• The number of items it normally rebuilds annually.

• Background and experience of the owners including education, training and 

certifications; previous heavy-duty engine rebuild experience; and any experience 

with an OEM or its franchised dealers. 

• Whether the business specializes in any particular type or make of heavy-duty 

engine or parts. 

• Whether it has performed work under the Carl Moyer Program; any other state or 

local program; or for any Federal, state or local agency. 

• Whether it has ever been investigated for malpractice or tampering with heavy-duty 

engines and if so, the results of the investigation. 

The letter must be signed by the owner of the business and must include the following 

statement: 

“I affirm that the rebuilt engine described in the Carl Moyer Program application will use 

only OE parts or non-OE parts from the parts list submitted to the air district. 

Furthermore, the rebuilt engine will be functionally equivalent from an emissions and 

durability standpoint to the OEM engine it is replacing.”

After review of the letter the air district or ARB may request additional information. 

3. Description of Work to be Performed 

 

The Carl Moyer Program applicant must submit an additional letter describing the 

proposed work or work already performed on the rebuilt engine. The letter must confirm 

that the parts used are equivalent to the CPL parts or corresponding arrangement 

number parts and that the rebuilt engine has the same configuration as the original 

engine. In addition, any re-calibrations or adjustments performed on the engine or 

engine components must be set forth in detail, as well as any work performed on parts 

that were taken out of the engine and re-inserted. 

The letter must also state that the rebuilt engine is functionally equivalent to an OEM 

rebuilt engine with regard to emissions and durability. Any test data that substantiate 

these emission claims shall be attached or included in the letter. 

 

B. Other Restrictions and Considerations 

The ARB may require emission testing on any engine, whether rebuilt by an OEM or 

non-OEM rebuilder. Engine testing may be specified prior to approval of a project as a 

condition of the grant for all rebuilders rebuilding under the grant, but normally will not 

be specified unless ARB has reason to believe that a proposed rebuilt engine will not be 

functionally equivalent from an emissions and durability standpoint to the OEM engine it 

is replacing. Engine testing may also be required after the project has been completed, 

in cases where there is evidence of malpractice or tampering. Engines that do not 

achieve the stated emission levels may be denied all or part of the requested funding. 
G-6 NON-OEM REPOWER AND REBUILD 

In cases where the money has already been disbursed, the applicant will be responsible 

for providing an acceptable engine or for reimbursing the state for Carl Moyer Program 

funds expended. In addition, other penalties may apply.