CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY

AIR RESOURCES BOARD

STAFF REPORT: INITIAL STATEMENT OF REASONS

PROPOSED DIESEL PARTICULATE MATTER CONTROL MEASURE FOR ON-ROAD

HEAVY-DUTY RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION

VEHICLES

Date of Release: June 6, 2003

Scheduled for Consideration: July 24-25, 2003

This report has been reviewed by the staff of the California Air Resources Board and

approved for publication. Approval does not signify that the contents necessarily reflect the

views and policies of the Air Resources Board, nor does mention of trade names or

commercial products constitute endorsement or recommendation for use.
State of California

California Environmental Protection Agency

AIR RESOURCES BOARD

PROPOSED DIESEL PARTICULATE MATTER CONTROL MEASURE FOR ON-ROAD

HEAVY-DUTY RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION

VEHICLES

Staff Report

June 6, 2003
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TABLE OF CONTENTS

EXECUTIVE SUMMARY.......................................................................................................................1

I. INTRODUCTION............................................................................................................................3

A. Overview and Purpose ..............................................................................................................3

B. Regulatory Authority...................................................................................................................4

C. Current Regulations and Voluntary Programs .......................................................................4

1. Federal Regulations ...............................................................................................................4

2. California Regulations............................................................................................................5

3. Local Regulations ...................................................................................................................6

4. Voluntary and Incentive Programs.......................................................................................6

II. PUBLIC OUTREACH.....................................................................................................................7

A. Environmental Justice................................................................................................................7

B. Outreach Efforts..........................................................................................................................8

III. NEED FOR REDUCTION OF DIESEL PARTICULATE MATTER EMISSIONS............10

A. Ambient Air Quality Standards for Particulate Matter.........................................................10

B. Identification of Diesel Particulate Matter as a Toxic Air Contaminant............................11

C. Physical and Chemical Characteristics of Diesel Particulate Matter................................11

D. Sources and Ambient Concentrations Of Diesel Particulate Matter.................................12

E. Health Effects of Diesel Particulate Matter...........................................................................13

F. Risk Assessment......................................................................................................................13

1. Statewide Risk Reduction Goal of Diesel Risk Reduction Plan....................................14

2. Collection Vehicle Health Risk Assessment.....................................................................15

IV. ENGINE AND EMISSION INVENTORY...............................................................................17

A. Engine Inventory.......................................................................................................................17

B. Emission Inventory...................................................................................................................17

V. SUMMARY OF PROPOSED CONTROL MEASURE ............................................................19

A. Scope and Applicability...........................................................................................................19

B. Determining Compliance of a Municipality with this Control Measure.............................19

C. Best Available Control Technology Requirement................................................................21

D. Implementation Schedule........................................................................................................23

E. Calculating Active Fleet Size ..................................................................................................24

1. Active Fleet Size Calculation – Regular Implementation Example...............................26

2. Active Fleet Size Calculation – Early Implementation Example ...................................27

3. Active Fleet Size Calculation – Small Fleet Example.....................................................28

4. Active Fleet Size Calculation – Fleet Turnover Example...............................................28

F. Compliance Extensions ...........................................................................................................30

1. Early Implementation...........................................................................................................30

2. No Verified Diesel Emission Control Strategy.................................................................31

3. Active Fleet with Fewer than Four Vehicles .....................................................................32

G. Diesel Emission Control Strategy Special Circumstances ................................................32

1. Failure or Damage of a Diesel Emission Control Strategy............................................33

2. Discontinuation of Fuel as a Diesel Emission Control Strategy....................................33

3. Level 1 Diesel Emission Control Strategy........................................................................33

4. Engine Retirement................................................................................................................34

5. Use of Experimental Diesel Particulate Matter Emission Control Technology...........34
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H. Record Keeping ........................................................................................................................35

1. Records Accessible at Terminal.........................................................................................35

2. Records Kept in Vehicle ......................................................................................................35

I. Enforcement..............................................................................................................................36

VI. AVAILABILITY AND TECHNOLOGICAL FEASIBILITY OF CONTROL MEASURE ....36

A. Availability of Best Available Control Technologies............................................................37

B. Availability of Diesel Fuel with 15 ppmw or Less Sulfur Content......................................37

VII. REGULATORY ALTERNATIVES..........................................................................................37

A. Do Not Adopt This Regulation................................................................................................37

B. Rely Only on Local Regulations in the South Coast Air Quality Management District..38

C. Rely on Federal Voluntary Program......................................................................................39

D. Require all Collection Vehicles to Repower with Engines Certified to 0.01 g/bhp-hr

Particulate Matter Standard in 2007..............................................................................................39

E. Require all Collection Vehicles to Convert to Alternative-Fuel Vehicles .........................40

F. Require Collection Vehicles to Use Diesel Oxidation Catalysts as of 2005....................40

VIII. ECONOMIC IMPACT...............................................................................................................41

A. Legal Requirement...................................................................................................................41

B. Affected Manufacturers............................................................................................................41

C. Estimated Costs to Collection Vehicle Owners ...................................................................42

1. Implementation Scenarios ..................................................................................................42

2. Implementation Costs..........................................................................................................45

D. Potential Impact on Small Businesses..................................................................................48

E. Potential Impact on Businesses.............................................................................................50

F. Potential Impact on Business Competitiveness...................................................................50

G. Potential Impact on Employment...........................................................................................50

H. Potential Impact on Business Creation, Elimination or Expansion...................................51

I. Potential Costs to Local and State Agencies.......................................................................51

J. Cost to the Average Household Receiving Waste Collection Service.............................52

IX. Environmental Impacts and Cost-Effectiveness..................................................................52

A. Benefits ......................................................................................................................................53

1. Statewide Benefits................................................................................................................53

2. Impacts on the State Implementation Plan for PM10.......................................................55

3. Cost-Effectiveness of Proposed Regulation.....................................................................56

B. Potential Negative Impacts .....................................................................................................56

1. Creation Of Nitrogen Dioxide By Passive Catalyzed Diesel Particulate Filters..........56

2. Diesel Oxidation Catalyst Emissions and Disposal........................................................57

3. Ash Management..................................................................................................................58

X. ISSUES..........................................................................................................................................58

A. Cost Recovery by Rate-Regulated Companies...................................................................59

B. Accelerated Implementation...................................................................................................60

XI. SUMMARY AND STAFF RECOMMENDATION.................................................................61

XII. REFERENCES.........................................................................................................................62
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TABLE OF FIGURES

Figure 1. Statewide Reduction in Diesel PM Emissions and Risk to Californians With and

Without the Diesel Risk Reduction Plan. ...................................................................14

Figure 2. Percentage of Collection Vehicles by Fleet Type (From ARB Engine Survey). ...20

Figure 3. Comparison of Baseline and Proposed Diesel Particulate Matter Inventory........38

TABLE OF TABLES

Table 1. Workshop Locations and Times.......................................................................................9

Table 2. State and National Particulate MatterStandards. .......................................................11

Table 3. Substances in Diesel Exhaust Listed by California as Toxic Air Contaminants.....12

Table 4. Estimated Exposure of Californians to Diesel Particulate Matter for 2000, 2010

and 2020 (ARB 2000b)........................................................................................................................13

Table 5. California’s Collection Vehicles by Type and Model Year Group.............................17

Table 6. Three Possible Scenarios for Diesel Particulate Matter Emission Reductions

Based on Diesel Emission Control Strategy Verification. ..............................................................18

Table 7. Potential Reductions from the Use of Diesel Emission Control Strategies.............22

Table 8. Implementation Schedule for Engine Model Years 1960 to 2006............................23

Table 9. Regular Implementation Schedule Example................................................................26

Table 10. Early Implementation Schedule Example.................................................................27

Table 11. Small Fleet Example....................................................................................................28

Table 12. Fleet Turnover Example..............................................................................................29

Table 13. Diesel PM Reductions by Alternative Compared to the Proposal........................41

Table 14. Implementation Scenario (Current). ..........................................................................43

Table 15. Implementation Scenario (Potential 1) - No Level 2 Verified................................44

Table 16. Implementation Scenario (Potential 2) – All Levels Verified.................................45

Table 17. Average Capital Costs for Diesel Emission Control Strategies. ...........................46

Table 18. Incremental Operation and Maintenance Costs for a Retrofitted Collection

Vehicle...............................................................................................................................................47

Table 19. Engine Repower...........................................................................................................47

Table 20. Estimated Average Cost to a Small or Large Fleet Collection Vehicle Owner

Based on the Average of Three Implementation Scenarios..........................................................49

Table 21. Total Estimated Statewide Cost for Local Government Agencies Based on the

Average of Three Implementation Scenarios. .................................................................................52

Table 22. Statewide Diesel PM Emission Reduction Benefits................................................53

Table 23. Other Pollutant Potential Reductions from Diesel Emission Control Strategies54

Table 24. Statewide Diesel Carbon Monoxide Emission Reduction Benefits......................54

Table 25. Statewide Diesel Hydrocarbon Emission Reduction Benefits...............................54

Table 26. Statewide Diesel Oxides of Nitrogen Emission Reduction Benefits.....................55

Table 27. Summary of Potential Impact from Modeled NO2/NOx Ratios..............................57
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TABLE OF APPENDICES

APPENDIX A: PROPOSED DIESEL PARTICULATE MATTER CONTROL MEASURE

FOR ON-ROAD HEAVY-DUTY RESIDENTIAL AND COMMERCIAL SOLID WASTE

COLLECTION VEHICLE DIESEL ENGINES

APPENDIX B: LISTING OF PUBLIC WORKSHOP ATTENDEES

APPENDIX C: VERIFIED EMISSION CONTROL STRATEGIES AS OF MARCH 2003

APPENDIX D: RISK SCENARIO METHODOLOGY

APPENDIX E: SOLID WASTE COLLECTION VEHICLE EMISSIONS INVENTORY

APPENDIX F: COST EFFECTIVENESS METHODOLOGY
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LIST OF ACRONYMS

$/lb Dollars per pound

AB Assembly bill

ARB, or the Board Air Resources Board

ATCM Air toxic control measure

BACT Best available control technology

CCR California Code of Regulations

CO Carbon monoxide

CRRC California Refuse Removal Council

DECS Diesel Emission Control System or Strategy

DOC Diesel Oxidation Catalyst

DRRP, or Diesel Risk

Reduction Plan

Risk Reduction Plan to Reduce Particulate Matter Emissions from

Diesel-Fueled Engines and Vehicles Risk Reduction Plan

DTSC Department of Toxic Substances Control

g/bhp-hr Grams per brake horsepower-hour

GVWR Gross vehicle weight rating

HC Hydrocarbon

H&SC Health and Safety Code

Low sulfur diesel fuel Diesel fuel with less than 15 ppmw sulfur content

μg/m3 Microgram per cubic meter

MY Model year

Moyer Program Carl Moyer Memorial Air Quality Standards Attainment Program

NO Nitrogen oxide

NO2 Nitrogen dioxide

NOx Oxides of nitrogen

NOV Notice of violation

NYGTC New York garbage truck cycle

OEHHA Office of Environmental Health Hazard Assessment

O & M Operation and maintenance

PM Particulate matter

ppmw Parts per million by weight

SWCV, or collection

vehicle

Solid waste collection vehicle

SCAQMD South Coast Air Quality Management District

SJVAPCD San Joaquin Air Pollution Control District

TAC Toxic air contaminant

tpd Tons per day

U. S. EPA United States Environmental Protection Agency

VIN Vehicle identification number

VOC Volatile organic carbon
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EXECUTIVE SUMMARY

The Air Resources Board, in addition to maintaining long-standing efforts to

reduce emissions of ozone precursors, is now challenged to reduce emissions of

diesel particulate matter. In 1998, the Air Resources Board identified diesel

particulate matter as a toxic air contaminant. Because of the amount of

emissions to California’s air and its potency, diesel particulate matter is by far the

number one contributor to the adverse health impacts of toxic air contaminants.

To address this health concern, the Air Resources Board adopted the “Risk

Reduction Plan to Reduce Particulate Matter Emissions from Diesel-Fueled

Engines and Vehicles” in October 2000. The projected emission benefits

associated with the full implementation of this plan, including proposed federal

measures, are reductions in diesel particulate matter emissions and associated

cancer risks of 75 percent by 2010 and 85 percent by 2020. To achieve these

goals, the Air Resources Board directed staff to develop specific control

measures designed to reduce diesel particulate matter emissions. The objective

of each regulation is to reduce diesel particulate matter to the greatest extent

possible through technologically feasible measures.

This report describes the proposed “Diesel Particulate Matter Control Measure

for On-Road Heavy-Duty Residential and Commercial Solid Waste Collection

Vehicle Diesel Engines.” The control measure is directed toward the reduction of

diesel particulate matter emissions from 1960 to 2006 model years diesel-fueled

engines in residential and commercial solid waste collection vehicles. The

owners of these collection vehicles must use best available control technology for

their engines, which is defined as either an engine alone or in conjunction with a

verified diesel emission control strategy that meets a 0.01 gram per brake

horsepower-hour particulate matter standard; an alternative-fuel engine or heavyduty pilot-ignition engine; or application of an Air Resources Board-verified diesel

emission control strategy to the engine, which reduces diesel particulate matter

emissions by the greatest amount possible for that engine and application. The

requirement to install best available control technology will be phased-in between

December 31, 2004 and December 31, 2010, by engine model year group.

Municipalities contract, license, and permit many of the solid waste collection

vehicle owners covered by this regulation in California. The rates that can be

charged by solid waste collection vehicle owners for solid waste collection are

regulated in some form by these municipalities. The proposed regulation

requires municipalities to bear joint responsibility with vehicle owners for

compliance and enforcement of the application of best available control

technology to vehicles that operate under contract, license, or permit for solid

waste collection. Municipalities also have reporting responsibilities.

In the development of this control measure, staff relied on public involvement and

dialogue through public workshops and meetings with groups and individuals.
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This measure will reduce diesel particulate matter emissions by 1.03 to 1.15 tons

per day (tpd) of particulate matter in 2010. This translates to as high as 81

percent reduction expected in 2010 and up to 85 percent reduction in 2015 of

diesel particulate matter from the solid waste collection vehicle fleet. The best

available control technologies associated with the proposed regulation are

expected to reduce other pollutant emissions, including ozone precursors, as

well. Between 3.45 and 3.69 tpd of hydrocarbons, 8.86 and 9.44 tpd of carbon

monoxide and 13.0 and 18.08 tpd of oxides of nitrogen may be reduced as a

result of this regulation in 2010. Furthermore, cancer risk as a result of exposure

to diesel particulate matter will be reduced by a factor of ten from a high of about

31 cancer cases per million to about three in a million in the highest exposure

areas.

The costs associated with carrying out this proposed control measure will be on

the order of the costs associated with other major Air Resources Board programs

to reduce air toxic emissions. The approximate cost effectiveness is $28 per

pound of particulate matter reduced, if all of the costs of compliance are allocated

to diesel particulate matter reduction. Since this rule will also result in significant

reductions in hydrocarbons and oxides of nitrogen emissions, staff allocated half

of the costs of compliance against these benefits, resulting in cost-effectiveness

values of $13 per pound of diesel particulate matter and $ 0.71 per pound of

hydrocarbon plus oxides of nitrogen reduced. Since the proposed regulation

impacts solid waste collection vehicles, costs are expected to be passed on to

the solid waste collection customers. The cost per household would be about

$5.90 per household in total or $0.85 per household annually from 2004 to 2010.

The proposed control measure, as described herein, is consistent with the risk

management phase of the “Risk Reduction Plan to Reduce Particulate Matter

Emissions from Diesel-Fueled Engines and Vehicles.” The Air Resources Board

staff, therefore, recommends that the Board adopt new sections 2020, 2021.1

and 2021.2, title 13, California Code of Regulations (CCR), set forth in the

proposed Regulation Order in Appendix A.
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I. INTRODUCTION

The Air Resources Board (ARB, or “the Board”), in addition to maintaining longstanding efforts to reduce emissions of ozone precursors, is now challenged to

reduce emissions of diesel particulate matter (PM). In 1998, the ARB identified

diesel PM as a toxic air contaminant (TAC). Because of the amount of emissions

in California’s air, and the magnitude of the cancer potency, diesel PM is by far

the number one contributor to the adverse health impacts of toxic air

contaminants.

The public’s exposure to TACs is a significant public health issue in California. In

1983, the California Legislature adopted Assembly Bill (AB) 1807 to enact a

program to identify the health effects of TACs and reduce exposure to these

contaminants in order to protect public health (Health and Safety Code (H&SC)

sections 39650 - 39674). The Legislature established a two-step process to

address the potential health effects from TACs. The first step is the risk

assessment or identification phase while the second is the risk management or

emission reduction phase.

A. Overview and Purpose

After ten years of extensive research and public outreach, the Board identified

diesel PM as a TAC in August 1998 (CalEPA 1998). As part of the identification

process, the Office of Environmental Health Hazard Assessment (OEHHA)

evaluated the potential for diesel exhaust to affect human health. OEHHA found

exposure to diesel PM exhaust resulted in an increased risk of cancer and an

increase in chronic non-cancer health effects, including a greater incidence of

coughing, labored breathing, chest tightness, wheezing, and bronchitis (OEHHA

1998).

Following the identification process, the next step mandated by law is the risk

management, or emission reduction phase of the process. ARB staff spent two

years working with stakeholders in determining the best control measures for

diesel PM. The result was the “Risk Reduction Plan to Reduce Particulate Matter

Emissions from Diesel-Fueled Engines and Vehicles” (Diesel Risk Reduction

Plan, or DRRP), which was approved by the Board in September 2000. This

plan directs staff to develop measures to reduce diesel PM emissions from all

diesel-fueled engines and vehicles by developing “new retrofit requirements for

existing on-road, off-road, and stationary diesel-fueled engines and vehicles

where determined technically feasible and cost-effective.”

The proposed diesel PM control measure herein represents the second

regulation in a series to implement the Diesel Risk Reduction Plan. It is an

important step toward achieving the goal of reducing diesel PM emissions to at or

near zero by the year 2020. This rule will be followed by similar regulations to
4

reduce diesel PM emissions from other sources, such as public fleets,

emergency stand-by generators, trucks that transport fuel, transportation

refrigeration units, and other on- and off-road vehicles. By 2005, ARB plans to

have adopted diesel PM control measures for most mobile and stationary diesel

engines, including off-road and portable equipment.

B. Regulatory Authority

The Federal Clean Air Act grants California the authority to control emissions

from mobile sources. The California Clean Air Act (H&SC sections 39002,

43013, and 43018) establishes the ARB as the state agency that sets standards

for mobile sources. Most important to this regulation, the California Legislature

also granted ARB the authority to identify TACs and establish airborne toxic

control measures (ATCMs) to reduce risk.

In controlling TACs, the Board is directed to address specific issues pursuant to

the need for regulation (H&SC section 39665). These requirements were

addressed in detail in the Diesel Risk Reduction Plan, including the extent of

present and anticipated future emissions, the estimated levels of human

exposure, and the risks associated with those levels. The DRRP (ARB 2000b)

describes the physical and chemical characteristics of diesel PM and the

contribution to emissions by present sources, as well as the costs, availability,

technological feasibility of control measures, and the potential adverse health or

environmental impacts. Each of these issues is considered in the development

of diesel PM regulations and will be discussed in this report specifically as each

relates to this control measure.

C. Current Regulations and Voluntary Programs

Both the Federal government and the State of California have adopted rules that

reduce diesel PM from on-and off-road vehicles. The following sections briefly

describe the existing federal, state, local and voluntary programs that currently

apply to diesel-fueled engines and vehicles operating in California.

1. Federal Regulations

Standards for smoke emissions from on-road heavy-duty diesel vehicles were set

by the United States Environmental Protection Agency (U.S. EPA) in 1970. New

engines were subject to PM exhaust emission standards with model year (MY)

1988. Over the years, more stringent emission standards have paralleled

improvements in control technology. Recent amendments to the on-road

standards regulate the heavy-duty vehicle and its fuel as a single system,

including diesel-fuel sulfur-content requirements. The particulate standard for

new heavy-duty diesel engines is 0.01 grams per brake-horsepower hour (g/bhphr), which is a 90 percent reduction from the existing standard, and will take

effect with MY 2007. That standard is based on the use of high-efficiency
5

exhaust emission control devices or comparably effective advanced

technologies. Because these devices are less efficient when used with the

current formulation of diesel fuel, reducing the level of sulfur in highway diesel

fuel by 97 percent to 15 parts per million by weight (ppmw) by mid-2006 is also

required.

Whereas the current PM engine emission standard for on-road heavy-duty diesel

trucks is 0.1 g/bhp-hr, the current federal PM emission standard for new urban

transit bus engines is 0.05 g/bhp-hr. On April 23, 1993, the U.S. EPA finalized

the Urban Bus Retrofit/Rebuild Program to reduce the ambient levels of diesel

PM in urban areas. The program is limited to 1993 and earlier model year urban

buses operating in metropolitan areas with 1980 populations of 750,000 or more,

whose engines are rebuilt or replaced after January 1, 1995. Approximately 40

urban areas are affected. Operators of the affected buses are required to

choose between two compliance options: Program 1 sets PM emissions

requirements for each urban bus engine in an operator's fleet which is rebuilt or

replaced; Program 2 is a fleet averaging program that establishes specific annual

target levels for average PM emissions from urban buses in an operator's fleet.

Other than the Urban Bus Retrofit/Rebuild Program, no other federal regulations

exist mandating reducing emissions from in-use heavy-duty engines.

2. California Regulations

California is the only state granted the authority in the Federal Clean Air Act to

set standards for mobile engines. While its passenger car standards are more

stringent than federal standards, in the area of new heavy-duty diesel engines

California has generally harmonized with federal rules. However, California has

also adopted regulations to ensure compliance with smoke standards.

California’s Heavy Duty Vehicle Inspection and Periodic Smoke Inspection

Programs reduce excessive smoke emissions and tampering with diesel-fueled

vehicles over 6,000 pounds gross vehicle weight rating (GVWR) and apply to all

trucks traveling within California. The regulations impose limits on the opacity of

smoke from diesel engines when measured in accordance with a snapacceleration test procedure, and have been in effect since 1991, with

amendments adopted in 1997.

Another source for which California has adopted more stringent regulations than

the U.S. EPA is urban transit buses. The Fleet Rule for Transit Agencies,

adopted in February 2000 and amended in October 2002, is designed to achieve

significant reductions in diesel PM and oxides of nitrogen (NOx) emissions from

2001 to 2015 through the implementation of a fleet rule and increasingly stringent

engine standards. Emission reductions are achieved as transit agencies

purchase new lower-emission buses or repower older, higher-emitting buses to

lower-emitting configurations. Reductions in diesel PM are also mandated

beginning January 1, 2004, and the use of diesel fuel with less than 15 ppmw
6

sulfur content (low sulfur diesel fuel) is required, beginning July 1, 2002. For new

engines, long-term emission reductions are achieved through establishing

increasingly more stringent new engine standards. The particulate standard for

new engines sold in California is 0.01 g/bhp-hr for engines produced as of

October 1, 2002. Over time, ultra-low, near-zero, and zero emissions buses will

replace older higher emitting engines.

3. Local Regulations

The South Coast Air Quality Management District Rule 1193, “Clean On-Road

Residential and Commercial Refuse Collection Vehicles,” was adopted June 16,

2000 (SCAQMD 2000). This rule dictates that solid waste collection fleets

operating in the SCAQMD may only purchase alternative-fuel vehicles, and

applies to government agencies and private companies with fleets of 15 or more.

Compliance deadlines are July 1, 2001, for fleet operators of 50 or more

collection vehicles; and July 1, 2002, for fleet operators of 15 or more collection

vehicles. Prior to July 1, 2003, operators may purchase dual-fuel vehicles in lieu

of dedicated alternative-fuel vehicles. Amendments proposed in April 2003

would extend the date allowing purchase of dual-fuel vehicles to July 1, 2004.

4. Voluntary and Incentive Programs

Voluntary efforts play a key role in helping to achieve air quality goals. Incentives

or early implementation credits can induce vehicle owners to reduce vehicle

emissions prior to compliance deadlines or in excess of regulatory requirements.

The California Legislature established the Carl Moyer Memorial Air Quality

Standards Attainment Program (Moyer Program) in 1998 to reduce NOx

emissions from existing vehicles. The Moyer Program funds the incremental cost

of repower, retrofit, or purchase of new, cleaner engines that meet a specified

cost-effectiveness level for NOx reduction. In addition, the Moyer Program has a

statewide 25 percent PM emission reduction target and a 25 percent PM

emission reduction requirement for districts in serious nonattainment for federal

PM10 standards. Total Moyer Program funding since fiscal year 1998/1999 has

been approximately $114 million.

In 2000, the Legislature approved new funds to reduce emissions from school

buses. The ARB, in coordination with the California Energy Commission and the

local air pollution control districts, established guidelines for the Lower-Emissions

School Bus program. The goal of this incentive program is to reduce the

exposure of school children to both cancer-causing and smog-forming

compounds. This program utilizes two strategies to attain these goals: pre-1987

model year school bus replacement and in-use controls for later model year

diesel-fueled school buses. Over fiscal years 2000/2001 and 2001/2002,

program funding was $66 million total.
7

Voters approved Proposition 40, the California Clean Water, Clean Air, Safe

Neighborhood Parks, and Coastal Protection Act of 2000, which granted

additional funding to reduce diesel emissions. The measure provides about $50

million over two years to ARB, 20 percent of which is to be spent for the

acquisition of “clean, safe, school buses for use in California’s public schools.”

The remainder is allocated to the Moyer Program.

On the federal level, the U.S. EPA established a Voluntary Diesel Retrofit

Program in 2000 to address pollution from diesel construction equipment and

heavy-duty on-highway vehicles. This program allows fleet operators to choose

appropriate, U.S. EPA-verified technologies that will reduce the emissions of the

vehicles and engines in their fleets and identify potential funding sources to

assist air quality planners and fleet operators as they create and implement

retrofit programs. The program assists air quality planners in determining the

number of State Implementation Plan credits produced by their retrofit projects.

The U.S. EPA has also established a program to fund school bus retrofits and

replacements from penalty revenues.

II. PUBLIC OUTREACH

The ARB is committed to ensuring that all California communities have clean,

healthful air by addressing not only the regional smog that hangs over our cities

but also the nearby toxic pollution that is generated within our communities. The

ARB works to ensure that all individuals in California, especially the children and

elderly, can live, work and play in a healthful environment that is free from

harmful exposure to air pollution.

A. Environmental Justice

The ARB is committed to integrating environmental justice in all its activities. On

December 13, 2001 (ARB 2001d), the Board approved Environmental Justice

Policies and Actions,1 which formally established a framework for incorporating

environmental justice into the ARB's programs, consistent with the directives of

State law. Environmental justice is defined as the fair treatment of people of all

races, cultures, and incomes with respect to the development, adoption,

implementation, and enforcement of environmental laws, regulations, and

policies. These policies apply to all communities in California, but recognize that

environmental justice issues have been raised more in the context of low-income

and minority communities.

To achieve this ambitious goal, the ARB has established a Community Health

Program and placed new emphasis on community health issues in our existing

programs. The Neighborhood Assessment Program is a key component in the

Community Health Program. The Neighborhood Assessment Program Work

 

1

 Complete information for these programs can be found at http://www.arb.ca.gov/ch/ej.htm.
8

Plan presents a plan that the ARB staff proposes to use to develop guidelines for

evaluating and reducing air pollution impacts at the neighborhood-scale (ARB

2000a).

The Environmental Justice Policies are intended to promote the fair treatment of

all Californians and cover the full spectrum of ARB activities. Underlying these

Policies is a recognition that we need to engage community members in a

meaningful way as we carry out our activities. People should have the best

possible information about the air they breathe and what is being done to reduce

unhealthful air pollution in their communities. The ARB recognizes its obligation

to work closely with all stakeholders; communities, environmental and public

health organizations, industry, business owners, other agencies, and all other

interested parties to successfully implement these Policies.

This control measure is in direct response to the environmental justice policy to

reduce health risks from toxic air pollutants in all communities, especially lowincome and minority communities. This control measure, when adopted, will

provide immediate air-quality benefits by reducing diesel PM emissions from

collection vehicles, which operate in neighborhoods. The actions we have taken

in applying these policies in our rulemaking reflect the Board’s commitment to the

fair treatment of all people throughout California.

In addressing the environmental justice policy to support research and data

collection needed to reduce cumulative emissions and health risks in all

communities, ARB has initiated various studies to better understand issues such

as the physical and chemical characteristics of diesel PM and demonstrations of

emission control technologies. Staff has conducted a focused risk assessment to

characterize near-source dispersion patterns of diesel PM as they relate to

collection vehicles. The results of this study are discussed in Section III.F.

B. Outreach Efforts

As part of the environmental justice policy to strengthen our outreach and

education efforts in all communities, staff conducted extensive workshops and

meetings in the development of this rule from December 2000 through May 2003.

The meetings were held at times and locations that encouraged public

participation, including late afternoon and evening sessions. Attendees included

representatives from environmental organizations, waste management

companies and service providers, associations, and other parties interested in

residential waste removal (Appendix B). These individuals participated both by

providing data and reviewing draft regulations and by participating in open forum

workshops, in which staff directly addressed their concerns.

Staff met with a number of stakeholders’ groups throughout the rulemaking

process. Representatives of the California Refuse Removal Council (CRRC)

assisted us in gathering data from their members and also provided input in
9

developing our data survey forms. These initial meetings led to the formation of

an industry workgroup. This workgroup met six times over the course of a year,

during which staff worked closely with a group of collection vehicle fleet owners,

their CRRC representatives, and representatives of non-CRRC member

companies to review preliminary draft regulations thoroughly and work together

to resolve outstanding issues. Alternatives were suggested to the proposed

regulation and explored by staff.

The staff held two meetings with municipalities that contract for solid waste

collection or provide direct waste removal service, in addition to individual

contacts. These meetings were influential in helping determine specific feasibility

and implementation of the financial and enforcement sections of the proposed

regulation. Staff also met with the Californians for a Sound Fuel Strategy, a

coalition led by the California Chamber of Commerce, to discuss specific issues.

Staff also conducted outreach through telephone calls and site visits with

approximately 65 collection vehicle owners during the data collection phase of

feasibility studies to determine the engine exhaust temperatures and fleet

maintenance. A wide demographic of fleet types was covered by this outreach,

including both public and private fleets, and small and large fleets.

In 2001 and 2002, ARB held ten workshops in preparing this rule, with both

afternoon and evening sessions, in four different locations to accommodate as

many people as possible (Table 1). Over 2,500 individuals and/or companies

were notified through a series of mailings and a large number of people

participated (Appendix B). In addition, notices were posted to the diesel risk

reduction and collection vehicle rule web sites and e-mailed to subscribers of

ARB’s electronic list server.

Table 1. Workshop Locations and Times.

Date Location Time

June 26, 2001 Sacramento 2:30 – 4:30 PM

June 26, 2001 Sacramento 6:30 – 8:30 PM

June 28, 2001 El Monte 2:30 – 4:30 PM

June 28, 2001 El Monte 6:30 – 8:30 PM

September 4, 2001 Sacramento 1:30 – 3:30 PM

September 5, 2001 Los Angeles 1:30 – 3:30 PM

February 26, 2002 Oakland 2:00 – 4:00 PM

February 28, 2002 El Monte 4:00 – 6:00 PM

December 9, 2002 Sacramento 2:00 – 5:00 PM

December 10, 2002 El Monte 2:00 – 5:00 PM
10

To generate additional public participation and to enhance the information flow

between ARB and interested persons, staff made all documents, including

workshop presentations, available via the ARB’s Internet web sites on diesel risk

reduction and the collection vehicle rule.2 The web sites provide background

information on diesel PM, including fact sheets, workshop dates and locations,

and other diesel related information and serves as a portal to other web sites with

related information.

Staff will continue outreach and education efforts following the adoption of the

regulation to both municipalities and collection vehicle owners. Outreach plans

include development of a guidance document to describe compliance

mechanisms and technologies; training classes targeting mechanics and

maintenance personnel; and an enhanced web site. Staff will also develop

optional reporting forms for use by municipalities.

III. NEED FOR REDUCTION OF DIESEL PARTICULATE MATTER

EMISSIONS

Diesel PM is a complex mixture that consists of dry solid fragments, solid cores

with liquid coatings and small droplets of liquid. These tiny particles vary greatly

in shape, size and chemical composition and can be divided into several size

fractions. Coarse particles are between 2.5 and ten microns in diameter, and

arise primarily from natural processes, such as wind-blown dust or soil. Fine

particles are less than 2.5 microns in diameter and are produced mostly from

combustion, or burning activities and are termed PM2.5. Particles with an

aerodynamic diameter less than or equal to a nominal ten microns (about 1/7 the

diameter of a single human hair) are termed PM10; PM10 is a criteria air pollutant

for which federal and state ambient air quality standards have been set. Diesel

PM is a subset of PM10.

A. Ambient Air Quality Standards for Particulate Matter

Both the California and the U.S. EPA have established standards for the amount

of PM10 in the ambient air. These standards define the maximum amount of

particles that can be present in outdoor air without threatening the public's health

and welfare. California's current PM10 standard is more protective of human

health than the corresponding national standard. Standards for PM2.5 have also

been established to further protect public health (Table 2).

 

2

 Located at http://www.arb.ca.gov/diesel/dieselrrp.htm and

http://www.arb.ca.gov/msprog/SWCV/SWCV.htm.
11

Table 2. State and National Particulate Matter Standards.

California Standard National Standard

PM10

Annual Arithmetic Mean 20 μg/m3 Annual Arithmetic Mean 50 μg/m3

24 Hour Average 50 μg/m324 Hour Average 150 μg/m3

PM2.5

Annual Arithmetic Mean 12 μg/m3 Annual Arithmetic Mean 15 μg/m3

24 Hour Average No separate

State standard

24 Hour Average 65 μg/m3

When the ARB sets California's ambient air quality standards, it designs them to

protect the most sensitive subpopulations, whether that is children, the elderly, or

people with pre-existing disease, such as cardiac patients or asthmatics.

B. Identification of Diesel Particulate Matter as a Toxic Air Contaminant

After ten years of extensive research and public outreach, ARB identified diesel

PM as a TAC in August 1998 (CalEPA 1998). As part of the identification

process, OEHHA evaluated the potential for diesel exhaust to affect human

health. OEHHA found that exposures to diesel PM resulted in an increased risk

of cancer and an increase in chronic non-cancer health effects, including a

greater incidence of cough, labored breathing, chest tightness, wheezing, and

bronchitis (OEHHA 1998). OEHHA estimated, based on available studies, that

the potential cancer risk for exposure to diesel PM in concentrations of one

microgram per cubic meter (μg/m3) ranged from 130 to 2400 excess cancers per

million. The ARB’s Scientific Review Panel approved OEHHA’s determinations

concerning health effects and approved the range of risk for PM from dieselfueled engines, concluding that a value of 300 excess cancers per million people,

per μg/m3 of diesel PM, was appropriate as a point estimate of unit risk for diesel

PM.

OEHHA also concluded that exposure to diesel PM in concentrations exceeding

five μg/m3 can result in a number of long-term chronic health effects. The five

μg/m3 value is referred to as the chronic reference exposure value for diesel PM.

The SRP supported OEHHA’s conclusion and noted that the reference exposure

value may need to be lowered further as more data emerge on potential adverse

chronic effects of diesel PM.

C. Physical and Chemical Characteristics of Diesel Particulate Matter

Diesel PM is the non-gaseous portion of the exhaust from a diesel-fueled

compression ignition engine. PM emissions result from incomplete combustion

of fuel in the cylinder and lubrication oil that has entered the cylinder incidentally.
12

Diesel PM consists of several constituents, including an elemental carbon

fraction, a soluble organic fraction, and a sulfate fraction. The majority of diesel

PM, approximately 98 percent, is smaller than ten microns in diameter. Diesel

PM is a mixture of materials containing over 450 different components, including

vapors and fine particles coated with organic substances. Over 40 chemicals in

diesel exhaust are considered TACs by the State of California (Table 3).

Table 3. Substances in Diesel Exhaust Listed by California as Toxic Air

Contaminants.

Acetaldehyde Manganese compounds

Acrolein Mercury compounds

Aniline Methanol

Antimony compounds Methyl Ethyl Ketone

Arsenic Naphthalene

Benzene Nickel

Beryllium compounds 4-Nitrobiphenyl

Biphenyl Phenol

Bis[2-ethylhexyl]phthalate Phosphorus

1,3-Butadiene Polycyclic organic matter,

Cadmium

Chlorine

Chlorobenzene

Chromium compounds

including polycyclic aromatic

hydrocarbons (PAHs) and their

derivatives

Cobalt compounds Propionaldehyde

Creosol isomers Selenium compounds

Cyanide compounds Styrene

Dibutylphthalate Toluene

Dioxins and dibenzofurans Xylene isomers and mixtures

Ethyl benzene o-Xylenes

Formaldehyde m-Xylenes

Inorganic lead p-Xylenes

Note: California H&SC section 39655 defines a TAC as "an air pollutant which may cause or contribute to an

increase in mortality or in serious illness, or which may pose a present or potential hazard to human health."

D. Sources and Ambient Concentrations Of Diesel Particulate Matter

PM emissions from diesel-fueled vehicles and engines totaled about 28,000 tons

per year in California as of 2000 (ARB 2000b). These emissions come from a

wide variety of sources including over one million on-road and off-road vehicles,

about 16,000 stationary engines, and close to 50,000 portable engines. On-road

engines account for about 27 percent of the emissions, off-road engines and

portable engines about 71 percent, and the remaining two percent from

stationary engines. With full implementation of the current vehicle standards and

vehicle turnover, but not considering this control measure, diesel PM emissions
13

will still total about 22,000 tons per year in 2010 and about 19,000 tons per year

in 2020.

In the year 2000, outdoor diesel PM concentrations were 1.8 μg/m3 and projected

to be 1.5 μg/m3 in 2010 after accounting for current regulations. After including

indoor concentrations of diesel PM, total exposure was 1.26 μg/m3 in 2000 and

projected to be 1.05 μg/m3 in 2010 (Table 4).

Table 4. Estimated Exposure of Californians to Diesel Particulate Matter

for 2000, 2010 and 2020 (ARB 2000b).

Estimated Average Air Exposure Concentration

(mg/m3 ) and Potential Risk

(excess cancers/million)

2000 2010 2020

Exposure

Location

Estimated

Average Air

Exposure

Concentration –

1990 (mg/m3) Conc. Risk Conc. Risk Conc. Risk

Outdoor Ambient 3.0 1.8 540 1.5 450 1.2 360

Indoor 2.0 1.2 360 1.0 300 0.8 240

Total 2.1 1.26 380 1.05 315 0.84 252

E. Health Effects of Diesel Particulate Matter

Diesel PM has been linked to a wide range of serious health problems. Particles

that are deposited deep in the lungs can result in lung cancer, increased hospital

admissions; increased respiratory symptoms and disease; decreased lung

function, particularly in children and individuals with asthma; alterations in lung

tissue and respiratory tract defense mechanisms; and premature death.

Increased PM exposure causes increased cardiopulmonary mortality risk as

demonstrated in a validity and causality analysis of 57 epidemiological studies.

(Dab et al. 2001). Significant positive associations exist between lung cancer

incidence and the number of days per year that respirable particulates (PM10)

exceeded several thresholds (Beeson et al. 1998).

Long-term ambient concentrations of PM10 are associated with increased risks of

all natural cause mortality in males, mortality with any mention of nonmalignant

respiratory causes in both sexes, and lung cancer mortality in males (Abbey

2000; McDonnell et al. 2000). Initial findings indicate a clear correlation between

lower lung function and more intense air pollution and high levels of nitrogen

dioxide (NO2), PM10, PM2.5, and acid vapor appear to be associated with slower

lung growth (Peters 1991).

F. Risk Assessment

This section presents a brief summary of the potential cancer health risk

associated with exposures to diesel PM emissions from all diesel-fueled engines

in California. We also examine the potential cancer health risks associated with
14

exposure to solid waste collection activities and the reduction in risk that will

occur upon implementation of the proposed control measure.

1. Statewide Risk Reduction Goal of Diesel Risk Reduction Plan

Diesel PM is emitted from a variety of sources, including on- and off-road dieselfueled vehicles and stationary engines. On a statewide basis, the average

potential cancer risk associated with diesel PM emissions is 540 potential cases

per million statewide, with the potential risk in the South Coast Air Basin

estimated to be 1,000 per million people. Compared to other air toxics the Board

has identified and controlled, diesel PM emissions are estimated to be

responsible for about 70 percent of the total ambient air toxics risk. In addition to

these general risks, diesel PM can also present elevated localized or near-source

exposures. Depending on the activity and nearness to receptors, these potential

risks can range from small to 1,500 per million or more.

The goal of the Diesel Risk Reduction Plan is to reduce diesel PM emissions and

the associated cancer risk by 75 percent in 2010 and 85 percent in 2020

(Figure 1). This regulation is one of a group of regulations being developed to

achieve the emission reduction goals of the Diesel Risk Reduction Plan of

protecting the health of Californians by reducing the cancer risk from diesel PM

and complying with legal requirements to control a TAC. Other benefits

associated with reducing diesel PM emissions include increased visibility, less

material damage from soiling of surfaces, and reduced incidence of non-cancer

health effects, such as bronchitis, asthma, and allergy.

Figure 1. Statewide Reduction in Diesel PM Emissions and Risk to

Californians With and Without the Diesel Risk Reduction Plan.

0

10

20

30

40

50

60

70

80

90

100

2000 2010 2020

Year

% Year 2000 Emissions 

and Cancer Risk

W/O Plan

Plan
15

2. Collection Vehicle Health Risk Assessment

To examine the potential cancer health risks associated with exposure to PM

emissions from collection vehicle activities, ARB staff identified several operating

scenarios representing typical collection vehicle activities and determined the

potential risk associated with these hypothetical scenarios. The detailed

methodology used to estimate the potential cancer health risks is presented in

Appendix D of this report. Noncancer chronic and acute health effects were not

considered in this evaluation, although they are important. Cancer health

impacts from inhalation exposure to diesel PM outweigh the noncancer

multipathway health impacts to the speciated components of diesel PM.

Risk assessment is a complex process that requires the analysis of many

variables to simulate real-world situations. Three key types of variables can

impact the results of a health risk assessment for collection vehicle activities –

the magnitude of the diesel PM emissions, the meteorological conditions, and the

length of time someone is exposed to the emissions. The quantity of diesel PM

emissions is a function of the age of the collection vehicle, how many collection

vehicles are in a given area, and the operating schedules of these vehicles.

Older vehicles tend to have greater emissions than newer vehicles and the more

frequently a vehicle accesses a neighborhood, the greater the emissions in a

neighborhood. Meteorological conditions can have a large impact on the

resultant ambient concentration of diesel PM with higher concentrations found

along the predominant wind direction and under calm wind conditions. A

person’s proximity to the emission plume and how long he or she breathes the

emissions (exposure duration) are key factors in determining potential risk. The

longer the exposure time, the greater the potential risk.

In order to examine the range of potential cancer health risks associated with

exposure to diesel PM emissions from collection vehicle activities and the

reduction in risk due to the implementation of this control measure, ARB staff

evaluated three hypothetical exposure scenarios. In the first scenario, staff

examined the potential cancer risk in a residential neighborhood due to solid

waste collection. In the second scenario, staff determined the potential cancer

risk in a mixed commercial/residential neighborhood with more frequent solid

waste collection than in the first scenario. In the third scenario, staff calculated

the potential cancer risk to residents living along a roadway leading to a solid

waste disposal site.

The analyses were performed using the U.S. EPA’s CAL3QHCR dispersion

model to estimate the annual average diesel PM concentrations. Fleet weighted

emission factors were developed based on EMFAC2000 emission factors and

the New York Garbage Truck Cycle (NYGTC) testing conducted by West Virginia

University. Meteorological data from Anaheim was selected to provide

meteorological conditions representative of an urban area. The estimated annual

average diesel PM concentrations were then adjusted to take into consideration
16

how long a person might breathe these emissions. Consistent with the current

risk assessment methodology recommended by the OEHHA and used by ARB in

evaluating potential cancer risk from diesel PM emission sources, ARB staff

assumed nearby residents would be exposed to the modeled diesel PM

concentrations for 70 years. This exposure duration represented an “upperbound” of the possible exposure duration. The potential cancer risk was

estimated by multiplying the modeled annual average concentration of diesel PM

by the unit risk factor for diesel PM (300 excess cancers per million people per

μg/m3 of diesel PM).

Based on this evaluation, we found the estimated risk from collection vehicles

operating in a residential or mixed used area varies depending on the age and

number of collection vehicles operating in the neighborhood on a weekly basis.

As expected, the maximum risk and the highest average risk would occur in

neighborhoods serviced by older trucks and multiple trucks servicing the area

(i.e., separate collection for trash and recyclables). In most cases, however, the

potential cancer health risk in a neighborhood was less than ten potential cancer

cases in a million. The potential cancer risk was greater along the road leading

to a landfill due to the high frequency of vehicle trips. For this scenario the

potential cancer health risk varied with the volume of vehicle traffic and the

distance from the road. At 50 meters, the risk ranged from six to 18 potential

cancer cases in a million.

Reducing diesel PM emission from the collection vehicles will result in a

reduction of the potential cancer health risks. Based on the risk scenarios, staff

concluded the reductions in diesel PM emissions that will result from

implementation of the collection vehicle control measure will result in a reduction

in the associated potential cancer risk. Our analyses show an 85 percent

reduction in diesel PM emissions will reduce the potential health risk levels in

most cases to less than one potential cancer case in a million.

These estimated risk levels provide a quantitative assessment of the potential

risk levels in hypothetical neighborhoods. As mentioned previously, actual risk

levels from collection vehicles at any individual site will vary with site specific

parameters, including engine technologies, diesel emission control strategies

(DECS), emission rates, fuel properties, operating schedules, meteorology, and

the actual location of off-site receptors. In addition, although the overall

magnitude of the diesel PM emissions and risk reductions from the collection

vehicle control measure may appear modest, reducing these emissions are

necessary if we are to achieve the ultimate goals outlined in the Diesel Risk

Reduction Plan and to fulfill the requirements of H&SC section 39666. As

described in the DRRP (ARB 2000b), it is necessary to reduce diesel PM

emissions from essentially all diesel-fueled engines if we are to be successful in

reducing the significant public health risk associated with diesel PM. Also,

because diesel PM is a non-threshold carcinogen, California is required, under
17

H&SC section 39666, to reduce emissions to the lowest level achievable through

the application of best available control technology (BACT).

IV. ENGINE AND EMISSION INVENTORY

An improved engine and emission inventory was developed for this rule proposal,

including a new survey of collection vehicles in California (Appendix E of this

document and Technical Support Document, Appendix C). California’s emission

inventory includes data on a vehicle level. Engine data are critical, however, to

the understanding of how many vehicles will be able to apply what types of

BACT. Thus, staff undertook a detailed survey to determine the engine make,

model, model year, and vehicle type of the collection vehicles in California.

A. Engine Inventory

ARB has estimated the 2000 population of collection vehicles covered by this

proposal to be approximately 11,800. The 2010 population is projected to be

about 13,100 collection vehicles. ARB staff gathered engine and fleet data for

approximately 70 percent of the California collection vehicles. Staff extrapolated

these data to obtain a picture of the entire fleet of California collection vehicles

(Table 5). Details regarding the methodology and results are presented in

Appendix C of the Technical Support Document and the analysis and

implications of the data for the use of BACT are discussed in the Technical

Support Document.

Table 5. California’s Collection Vehicles by Type and Model Year Group.

Collection Vehicle Type

Engine Model

Year Group Front Loaders Rear Loaders Roll Offs

Side

Loaders

Total By Engine MY

Group

1960-1987 5% 8% 3% 2% 18%

1988-1990 6% 9% 2% 4% 21%

1991-1993 5% 4% 1% 7% 17%

1994-2002 10% 6% 3% 25% 44%

Total by Vehicle Type 26% 27% 9% 38% 100%

B. Emission Inventory

Substantial improvements have been made to the emissions inventory for

California on-road in-use collection vehicles. Updated population and turn over

(useful life) data, and emission rates have been incorporated into the revised

inventory (Appendix E). In 2000, the population of collection vehicles was

11,778, according to an ARB analysis of Department of Motor Vehicles data.

The population is expected to increase slowly during the implementation of this

regulation due to population increase in the State and a corresponding slow

increase in solid waste collection needs to over 13,100 collection vehicles. Fleet
18

turnover (the time a vehicle is retired from service) is expected to remain

relatively slow.

Three possible implementation scenarios were used for the emissions benefits

calculations (Table 6). The first is based on the implementation of currently

verified in-use DECSs (Current). The second and third scenarios are based on

no Level 2 DECSs verified (Potential 1) and Level 2 DECSs verified for all model

years (Potential 2). The scenarios, which are detailed in Tables 15 – 17, are

discussed in greater depth in the Technical Support Document. In short, the

Current scenario, based on current DECS verifications, assumes that 30 percent

of SWCVs will use Level 1 technology, 12 percent will use Level 3 technology,

and 58 percent will either be repowered or replaced with engines meeting the

0.01 gpbhp-hr PM standard. Scenario Potential 1 assumes a greater percentage

of vehicles will use Level 1 technology, 47 percent; the same number will use

Level 3 technology, 12 percent; and 41 percent will repower or replace. Finally,

Potential 2 scenario assumes a high number of vehicles will use Level 2

technology, 43 percent; and only 4 percent will use Level 1 technology. As with

Potential 1, 12 percent are assumed to use Level 3 technology and 41 percent

are assumed to be repowered or replaced. The option of converting to

alternative-fuel or heavy-duty pilot ignition engines exists for all engines either

through vehicle replacement or conversion of the engine. This option is included

in the scenarios as repower or replace.

Table 6. Three Possible Scenarios for Diesel Particulate Matter Emission

Reductions Based on Diesel Emission Control Strategy Verification.

Calendar PM Emissions Reduction

Year

Baseline

Inventorya

(tpd) Current Potential 1 Potential 2

2005 1.57 3% 6% 10%

2010 1.42 81% 72% 79%

2015 1.36 85% 71% 78%

2020 1.12 82% 67% 75%

a PM emissions without the proposed rulemaking.

Under these three scenarios, the diesel PM emissions from collection vehicles

are expected to be reduced from a baseline inventory of 1.57 tons per day (tpd)

in 2005 by between 72 and 81 percent in 2010 and between 67 and 82 percent in

2020 (Table 6). The greatest diesel PM emission reductions would be achieved

under the Current scenario, because the Current scenario is weighted toward

engine repowers. Fewer repowers are predicted in the Potential 1 and Potential

2 scenarios, which assume greater use of DECS that reduce diesel PM by less

than 85 percent (Level 3). The Potential 2 scenario predicts greater PM

reductions than Potential 1 because Potential 2 assumes that almost half of the
19

SWCVs will use Level 2 technologies, which reduce diesel PM more than Level 1

technologies.

Emissions of HC, CO, and NOx are also predicted to be reduced as a result of

this regulation as discussed in Section IX.

V. SUMMARY OF PROPOSED CONTROL MEASURE

A. Scope and Applicability

The core of this proposal is a requirement that owners of collection vehicles

apply BACT to their vehicles to reduce diesel PM emissions. The proposed

regulation imposes duties on collection vehicle owners (owners) and cities,

counties, and governmental agencies that contract for solid waste collection

services (municipalities). The proposed rule applies to a collection vehicle that

has a manufacturer’s GVWR greater than 14,000 pounds and a MY 1960 to 2006

engine. A collection vehicle that operates in residential and commercial-mixed

use neighborhoods directly impacts public exposure in the home and office.

Municipalities have the ultimate responsibility for solid waste collection, thus they

are jointly responsible with collection vehicle owners for implementing this

regulation.

B. Determining Compliance of a Municipality with this Control Measure

A little over half of California’s collection vehicles are under contract to a

municipality to provide residential and commercial solid waste collection service

(Figure 2). The municipalities, therefore, are critical stakeholders in the success

of this proposed regulation. Staff proposes that municipalities require

compliance with this regulation as a stipulation of any contract, license, or permit

the collection vehicle owner has with the municipality and that a collection vehicle

owner must comply with this regulation in order to maintain any contracts,

permits, or licenses to operate for a municipality. Municipalities have told staff

that contracts already require compliance with applicable regulations, thus this

requirement is not burdensome. Some municipalities, however, may need to

amend existing contracts so that the cost of complying with these regulations can

be incorporated into the rate base of a contract.

Staff additionally proposes that municipalities be required to track compliance

with the regulation through collecting signed statements from their contractors

annually, which should ensure that municipalities and collection vehicle owners

work together to comply with the regulation. The municipality is also required to

submit a description of the total cost and funding source that will be used to bring

a contractor into compliance with its initial report to ARB by August 1, 2004. The

initial report will be used to ensure that rate-regulated contractors and the

municipalities are discussing funding for compliance. Following the initial report,

municipalities are required to submit annual statements of compliance to ARB by
20

January 31st of each year – either by submitting one statement signed by the

municipality certifying compliance by its contractors or by submitting copies of the

certification statements it received from its contractors.

Private

37%

PrivateContracted by 

Municipality

52%

Public

11%

Private

Private-Contracted by

Municipality

Public

Figure 2. Percentage of Collection Vehicles by Fleet Type (From ARB

Engine Survey).

When a municipality submits its annual report to ARB, staff will check to ensure

all collection vehicle owners have stated they are in compliance with the

regulation. If an owner has not submitted a signed compliance statement, ARB

will investigate further. Staff may inspect the terminal and vehicles for

compliance. If the owner is not in compliance, ARB may issue a notice of

violation (NOV) or other document that requires the owner comply or face

penalties. The contractor/owner is required to send the municipalities with whom

they contract a copy of the non-compliance notification. ARB staff will also notify

the municipality that one of its contractors is out of compliance with the

regulation. ARB may also issue an NOV to the municipality for noncompliance

by one of its contracted companies as non-compliance is a violation by both the

vehicle owner and the municipality.

After January 31st of each year, if a municipality determines its contractor is outof-compliance, the municipality must notify the Executive Officer of the

determination within 30 days of discovery. Again, ARB will investigate and make

a determination on issuance of an NOV. A municipality that knows its contractor

is out of compliance and does not notify ARB within the required 30 days would

be in violation of the proposed regulation.

The rule mandates all collection vehicle owners be in compliance by December

31, 2012, which includes any granted compliance extensions. Therefore, staff

proposes municipalities submit their final reports on January 31, 2013. Following
21

that date, municipalities are still required to notify ARB of non-compliance by

contractors, and ARB will continue to notify municipalities of significant noncompliance by owners.

To assist with reporting, staff plans to develop an Internet-based automated

reporting form, which would be offered to municipalities as a mechanism to

streamline reporting. Municipalities may, of course, submit reports via the mail,

fax, or electronic mail using any format containing all required information in

section 2021.1 (b).

C. Best Available Control Technology Requirement

This rule proposes an owner be prohibited from operating a fleet of collection

vehicles unless the owner complies with this diesel PM control measure as of the

applicable implementation dates. Compliance with the proposed regulation is

determined by choosing the BACT option for each collection vehicle over a

phased-in implementation schedule, and keeping records at the maintenance

facility and on-board the vehicle for inspection.

BACT refers to three main compliance options: (1) use of an engine certified

either alone or in combination with a DECS to the 0.01 g/bhp-hr PM standard, (2)

an alternative-fuel or heavy-duty pilot-ignition engine, or (3) a DECS that receives

verification according to title 13, CCR, section 2702 for a specified engine, and

which the DECS manufacturer or authorized dealer agrees can be used on a

specified engine and vehicle combination. Owners are required to use the

highest level DECS verified for their engine and application at the time of retrofit.

An owner who chooses to use an engine certified to the 0.01 g/bhp-hr PM

standard would use an engine certified to either the optional 0.01 g/bhp-hr

particulate emission standard as specified in title 13, CCR, section 1956.8(a)(2),

or the 0.01 g/bhp-hr particulate emission standard as specified in title 13, CCR,

section 1956.8(a), when it becomes effective in 2007. This option has a greater

cost, as it entails either purchasing a replacement vehicle or engine (also called

engine repowering), but may be preferred by an owner when his vehicle’s engine

is nearing the end of its useful life. An engine certified to 0.01 g/bhp-hr PM,

however, may not be available for collection vehicles until the 2007 MY.

No additional controls are required to reduce diesel PM emissions from

alternative-fueled vehicles because, by definition, alternative-fuel vehicles do not

emit diesel PM. A dual-fuel collection vehicle, however, which uses both diesel

fuel and an alternative-fuel, is covered by the proposed rule, and thus would be

required to comply with the proposed regulation as a diesel-fueled vehicle. A

dual-fuel collection vehicle with a verified diesel particulate filter installed, for

example, would be in compliance with this regulation. A heavy-duty pilot-ignition

engine is treated like an alternative-fuel engine in this rule. This engine uses
22

diesel fuel in less than ten percent of its duty cycle for engine ignition and cannot

operate or idle solely on diesel fuel at any time.

The third option is to install a verified DECS to meet the BACT requirement. This

is a less expensive option that can be as effective in reducing diesel PM as

installing an engine certified to the 0.01 g/bhp-hr PM standard if the technology

used meets the Level 3 PM reduction requirements (Table 7). If an owner plans

to comply using this option, he or she must install technology verified by ARB.

Several DECS have received approval from ARB’s Executive Officer under the

Verification Procedure for In-Use Strategies to Control Emissions from Diesel

Engines (title 13, CCR, sections 2700-2710). In this procedure diesel PM control

devices can be verified to one of three levels of diesel PM reduction: Level 1,

from 25 to 49 percent; Level 2, from 50 to 84 percent; and Level 3, 85 percent

and greater. BACT is determined by Level, not by percent emission reduction.

Thus a technology that reduces diesel PM by, for example, 45 percent is

equivalent, under this rule, to one that reduces diesel PM by 25 percent. Both

get the same credit as Level 1 DECSs.

Table 7. Potential Reductions from the Use of Diesel Emission Control

Strategies.

Maximum PM Emissions (gbhp-hr)

Engine MYs

Particulate

Standard

(g/bhp-hr) Level 3 Level 2 Level 1

1960 – 1987 None 85%

reduction

50%

reduction

25%

reduction

1988 – 1990 0.6 0.09 0.30 0.45

1991 – 1993 0.25 0.04 0.13 0.19

1994 – 2006 0.1 0.02 0.05 0.08

The concept of BACT using a DECS can be further explained as follows. An

owner must look for the highest level DECS that can be installed and operated

successfully on each combination of an engine in a vehicle. If a Level 3 DECS is

available for the engine, this option must be applied to the engine provided the

DECS manufacturer or authorized dealer agrees that the DECS will work in that

vehicle. If a Level 3 is not available or feasible, then a Level 2 option must be

explored. A device verified to this level, for example, might be employed for

those vehicles that do not have the appropriate PM to NOx ratio or exhaust

temperature for a Level 3 DECS.

A Level 1 DECS is acceptable only if it is the only option available for the engine

or application, with the exception that the oldest engines in Group 2 may not use

Level 1 technology, unless the owner has fewer than 15 vehicles. If no DECS is

verified and feasible, the owner may apply for an implementation delay, as

discussed later, but will eventually have to repower or otherwise replace the

engine with one meeting the 0.01 g/bhp-hr PM standard, an alternative fuel
23

engine, or a heavy-duty pilot ignition engine. Technologies to meet the BACT

option are discussed in more details in the Technical Support Document.

D. Implementation Schedule

Staff proposes an implementation schedule designed with the goals of phasing-in

implementation by technical feasibility and cost (Table 8).

Table 8. Implementation Schedule for Engine Model Years 1960 to 2006.

Group Engine MY

Percentage of Group to

Use Best Available

Control Technology

Implementation

Date

1 1988 – 2002 10

25

50

100

December 31, 2004

December 31, 2005

December 31, 2006

December 31, 2007

2

a

1960 – 1987 25

50

75

100

December 31, 2007

December 31, 2008

December 31, 2009

December 31, 2010

3 2003 – 2006 50

100

December 31, 2009

December 31, 2010

aGroup 2: An owner of an active fleet with 15 or more collection vehicles may not use Level 1

technology as BACT (see section f.3.b.).

The first implementation group includes vehicles with MY 1988 through 2002

engines. In this group, the engines most likely to be successfully retrofitted with

Level 3 DECS are MY 1994 to 2002 engines. ARB has already verified two

types of Level 3 DECS for a number of engines in this group. The MY 1988 to

1993 engines are expected to be able to use either a Level 1 or Level 2 DECS,

or to repower to a 0.01 g/bhp-hr PM emissions certified engine, or to use an

alternative-fuel or heavy-duty pilot-ignition engine (see Technical Support

Document for additional discussion). The repower may be accomplished through

one of two means, either through the purchase of a new 2007 MY engine or

through the installation of a 1994 to 2002 MY engine and a diesel particulate

filter. Thus, the first group includes both engines that should achieve the highest

emission reductions through application of a DECS and engines that have higher

emissions and may either be retired or have lower level DECS applied.

In addition, based on ARB surveys of the industry, staff believes public and

private fleets will be impacted equally in Group 1 (MY 1988 – 2002). Public and

large private fleets tend to buy vehicles new and sell them to smaller companies

after ten years. Since Group 1 includes both newer and older engines, the three

fleet types should be impacted similarly.
24

The higher emitting, mechanical engines in the Group 2, MY 1960 to 1987

engines, are more difficult to retrofit with DECSs. The best means to reduce PM

emissions from these vehicles may be to replace the engines with newer engines

plus a Level 3 verified DECS. In other words, an owner could repower with a MY

1994 – 2002 engine and add a diesel particulate filter. Alternately, with engines

this old, the best strategy may be a complete replacement. Group 2 engines are

brought into compliance later than the Group 1 engines in order to allow

additional time technology development and for owners to plan for engine

replacement.

The use of Level 1 technology, however, is restricted in Group 2 engines.

Owners with fewer than 15 collection vehicles would be allowed to use a Level 1

DECS, if any is available and verified, in addition to the options available to larger

fleets. Owners of larger fleets are required to retire these engines or use Level 2

or 3 verified DECS by the end of 2010. The majority of diesel PM emissions from

collection vehicles are produced by this engine model year group.

Group 3 engines, the newest engines with MYs 2003 to 2006, are to be brought

into compliance by the end of 2010. This group comprises the smallest portion of

the fleet in both vehicle numbers (nine percent of the total California collection

vehicle fleet) and diesel PM emissions (two percent of total SWCV emissions).

Staff anticipates Level 3 technologies to be verified for these MY engines in the

future, although the use of exhaust gas recirculation (EGR) to reduce NOx

emissions in these engines may make application of particulate filters

challenging. The possibility also exists that one or more engine manufacturers

could make 2007 emission standard compliant engines available for purchase

before 2007.

A dual-fuel collection vehicle implements according to its model year. Any dualfuel collection vehicle that has been retrofitted with a diesel particulate filter, for

example to comply with the SCAQMD Rule 1193, is in compliance with the BACT

requirement. Level 3 DECSs are currently verified for specific dual-fuel vehicles,

thus owners should be able to comply with the proposed regulation according to

the implementation schedule.

New technologies may be verified by ARB during the seven-year implementation

period, resulting in additional Level 2 and 3 technologies available at lower cost,

thus resulting in more cost-effective overall diesel PM emission reductions over

time. Also, the possibility exists that 2007 emission standard compliant engines

could be available for purchase earlier, if a heavy-duty diesel engine

manufacturer made them available.

E. Calculating Active Fleet Size

The total number of vehicles comprising an owner’s active fleet may vary from

year to year because of new purchases and retirement of older vehicles, thus
25

complicating the calculation of the number of vehicles that must be in compliance

each year. ARB staff, therefore, proposes to define the owner’s active fleet in the

following manner.

The active fleet comprises 1960 to 2006 engine MY residential and commercial

collection vehicles with a manufacturer’s gross vehicle weight rating greater than

14,000 pounds, including back-up or spare vehicles that accrue greater than

1000 miles per year, and is calculated by terminal. The owner may include

alternative-fueled collection vehicles in this calculation.

To determine compliance with this phase-in, the owner must calculate active fleet

size annually beginning January 1, 2004. In order to ensure equity regarding the

locations of PM reductions and public exposure, the active fleet is calculated by

terminal, not by an owner’s entire fleet, which may be spread out through the

state. Many of the larger companies operate out of multiple terminals, and the

potential exists for a company to bring one entire terminal’s fleet into compliance

before another, which would lead to a neighborhood being exposed to higher

diesel PM concentrations than the one brought into compliance first.

Two equations are used to calculate fleet size for any given year:

(1) TotVeh = Group%BACT * (#SWCV), and

(2) TotAddComp = TotVeh – TotComp,

where,

TotVeh = total number of collection vehicles required to be in compliance by the

“Compliance Deadline,”

Group%BACT = “Percentage of Group to Use Best Available Control

Technology” for the particular year,

#SWCV = sum of the number of collection vehicles in an engine model year

group,

TotComp = total number of collection vehicles in compliance as of the calculation

date, and

TotAddComp = total number of additional collection vehicles required to be

brought into compliance before the next compliance deadline

If the TotAddComp is not equal to a whole number of collection vehicles, the

owner is expected to round up to the nearest collection vehicle when the

fractional part of TotAddComp is greater than or equal to one-half of a collection

vehicle, and expected to round down to the nearest collection vehicle when the

fractional part of TotAddComp is less than one-half of a collection vehicle.

Four active fleet size calculations are given below to illustrate various cases

owners might experience. The first is a regular implementation schedule with no

early implementation. The second is a fleet that implements early. The third is a

fleet with fewer than four vehicles in a model year group. The fourth is a fleet
26

experiencing turnover with engines being retired and other engines being

purchased.

1. Active Fleet Size Calculation – Regular Implementation Example

A fleet with 30 collection vehicles with a portion of vehicles in each engine model

year group (Table 9) would implement using Equations (1) and (2) as calculated

below.

Table 9. Regular Implementation Schedule Example.

Number of Collection Vehicles to Implement

By December 31st of Each Year (TotAddComp) Engine MY

Group

January 1,

2004 Inventory

(#SWCV) 2004 2005 2006 2007 2008 2009 2010

1 16 4 4 4 4 --- --- ---

2 10 --- --- --- 3 2 3 2

3 4 --- --- --- --- --- 2 2

The fleet inventory does not change throughout the phase-in period. Therefore

the #SWCV remains the same each year.

Since only engines in model year Group 1 are to be brought into compliance in

2004, 2005 and 2006, there is only one group to calculate for in 2004,

TotVeh = 0.25 * (16) = 4,

TotAddComp = 4 – 0 = 4.

In 2005, Group 1 continues to implement,

TotVeh = 0.5*(16) = 8,

TotAddComp = 8 – 4 = 4.

In 2006, Group 1 continues to implement,

TotVeh = 0.75*(16) = 12,

TotAddComp = 12 – 8 = 4.

In 2007, the calculation for engine model year Group 1 is the same,

TotVeh = 1*(16) = 16,

TotAddComp = 16 – 12 = 4.

But now Group 2 begins to implement, and, therefore, must also be calculated,

TotVeh = 0.25*(10) = 2.5 α 3 (The number of vehicles to implement must be

rounded up to a whole number, when the fractional part of a vehicle is 0.5 or

greater)

TotAddComp = 3 – 0 = 3.
27

In 2008, since engine model year Group 1 has finished implementing, the

calculation is only for Group 2,

TotVeh = 0.5*(10) = 5,

TotAddComp = 2.

In 2009, Group 2 continues implementing,

TotVeh = 0.75*(10) = 7.5 α 8,

TotAddComp = 8 – 5 = 3,

And, Group 3 begins implementing,

TotVeh = 0.5*4 = 2,

TotAddComp = 2 – 0 = 2.

In 2010, Group 2 completes implementation,

TotVeh = 1*(10) = 10,

TotAddComp = 10 – 8 = 2,

As does Group 3,

TotVeh = 1*(4) = 4,

TotAddComp = 4 – 2 = 2.

2. Active Fleet Size Calculation – Early Implementation Example

A fleet with 30 collection vehicles with a portion of vehicles in each engine model

year group that implements early (Table 10) would implement using Equations

(1) and (2) as calculated below.

Table 10. Early Implementation Schedule Example.

Number of Collection Vehicles to Implemented

By December 31st of Each Year (TotAddComp) Engine

MY

Group

January

1, 2004

Inventory

(#SWCV) 2004 2005 2006 2007 2008 2009 2010 2011 2012

1 16 12 --- --- --- --- 4 --- --- ---

2 10 --- --- 5 --- --- 3 --- --- 2

3 4 --- --- --- --- --- 2 2 --- ---

The fleet inventory does not change throughout the phase-in period; therefore

#SWCV remains the same each year. The owner implemented BACT on

seventy-five percent of his Group 1 collection vehicles by December 31, 2004,

TotVeh = 0.75*(16) = 12,

so the owner could delay the 100 percent compliance deadline for Group 1 to

December 31, 2009,

TotVeh = 1*(16) = 16,

TotAddComp = 16 – 12 = 4.
28

The owner also implemented BACT on fifty percent his Group 2 collection

vehicles by December 31, 2006,

TotVeh = 0.5*(10) = 5.

The owner would still need to implement BACT on 75 percent of his Group 2

collection vehicles by December 31, 2009,

TotVeh = 0.75*(10) = 7.5 α 8

TotAddComp = 8 – 5 = 3.

The owner could delay the 100 percent compliance deadline for Group 2 to

December 31, 2012,

TotVeh = 1*(10) = 10

TotAddComp = 10 – 8 = 2.

3. Active Fleet Size Calculation – Small Fleet Example

A fleet with fewer than four collection vehicles per engine model year group can

ignore 25, 50 and 75 percent implementations and is only required to implement

by the 100 percent implementation date for each engine model year group

(Table 11). A fleet with three collection vehicles in engine model year Group 1

would implement all three vehicles by December 31, 2007. Likewise, a fleet with

three collection vehicles in Groups 2 and 3, respectively, would implement bring

all three vehicles into compliance by December 31, 2010.

Table 11. Small Fleet Example.

Number of Collection Vehicles to Implement

By December 31st of Each Year (TotAddComp)

Engine

MY

Group

January 1, 2004

Inventory

(#SWCV) 2004 2005 2006 2007 2008 2009 2010

1 3 --- --- --- 3 --- --- ---

2 3 --- --- --- --- --- --- 3

3 3 --- --- --- --- --- --- 3

4. Active Fleet Size Calculation – Fleet Turnover Example

A fleet with 30 collection vehicles with a portion of vehicles in each engine model

year group (Table 12) and which changes its fleet composition over time would

implement using Equations (1) and (2) as calculated below.
29

Table 12. Fleet Turnover Example.

January 1st Inventory of Each Year (#SWCV = #)/

Number of Collection Vehicles to Implement

By December 31st of Each Year (TotAddComp = Tot)

2004 2005 2006 2007 2008 2009 2010

Engine

MY

Group

# Tot # Tot # Tot # Tot # Tot # Tot # Tot

1 16 4 18 5 18 5 18 4 18 0 18 0 18 0

2 10 0 8 0 8 0 6 2 6 1 4 0 2 0

3 4 0 4 0 4 0 6 0 6 0 8 4 10 6

The fleet inventory changes throughout the phase-in period, but the total number

of vehicles in the fleet remains at 30.

Since only engines in model year Group 1 are to be brought into compliance in

2004, 2005 and 2006, there is only one group to calculate for in 2004,

TotVeh = 0.25 * (16) = 4,

TotAddComp = 4 – 0 = 4.

In 2005, two vehicles are added to Group 1 and, therefore, implementation

continues as follows,

TotVeh = 0.5*(18) = 9,

TotAddComp = 9 – 4 = 5.

In 2006, Group 1 continues to implement with the enhanced inventory,

TotVeh = 0.75*(18) = 13.5 α 14,

TotAddComp = 14 – 9 = 5.

In 2007, the calculation for engine model year Group 1 is the same,

TotVeh = 1*(18) = 18,

TotAddComp = 18 – 14 = 4.

But now Group 2 begins to implement, and, therefore, must also be calculated,

TotVeh = 0.25*(6) = 1.5 α 2 (The number of vehicles to implement must be

rounded up to a whole number, when the fractional part of a vehicle is 0.5 or

greater)

TotAddComp = 2 – 0 = 2.
30

In 2008, since engine model year Group 1 has finished implementing, the

calculation is only for Group 2,

TotVeh = 0.5*(6) = 3,

TotAddComp = 3 – 2 = 1.

In 2009, Group 2 continues implementing,

TotVeh = 0.75*(4) = 3,

TotAddComp = 3 – 3 = 0,

and, Group 3 begins implementing,

TotVeh = 0.5*8 = 4,

TotAddComp = 4 – 0 = 4.

In 2010, Group 2 completes implementation,

TotVeh = 1*(2) = 2,

TotAddComp = 2 – 3 = -1 = 0.

As does Group 3,

TotVeh = 1*(10) = 10,

TotAddComp = 10 – 4 = 6.

Collection vehicles within one year of retirement would be exempt from

compliance with the proposed regulation as described in the following section.

F. Compliance Extensions

Staff believes owners may experience conditions justifying a compliance

extension. Three main categories of compliance extensions exist: early

implementation, no verified DECS, and active fleets with fewer than four vehicles.

1. Early Implementation

Staff recognizes some companies have already made considerable efforts to

reduce emissions from their vehicles through early application of BACT. Staff

proposes to give some allowance to these fleets in the following two situations.

If an owner has applied BACT to 50 percent of the collection vehicles in Group 1

(MY 1988 – 2002) in his or her active fleet before December 31, 2004, the owner

may delay 100 percent compliance of the Group 1 vehicles to December 31,

2009. Likewise, if an owner has applied BACT to 50 percent of the collection

vehicles in Group 2 (MY 1960 – 1987) in his or her active fleet before December

31, 2006, the owner may delay 100 percent compliance of the Group 2 vehicles
31

to December 31, 2012. An owner who implements early will not be required to

install a higher level DECS if one becomes available between the time the DECS

is installed early and the mandated compliance date. A compliance extension for

early implementation allows SWCV owners to stretch out implementation beyond

required dates while at the same time implementing early in at least half of the

vehicles. Owners may qualify for local funding based on early implementation

because it is voluntary and occurs prior to the mandated implementation dates.

2. No Verified Diesel Emission Control Strategy

An owner may be granted a delay in implementing the BACT if no verified DECS

exists for an engine and application. This delay recognizes the higher cost of an

engine repower or replacement and provides the owner additional time to plan for

this cost. In addition, during the time allowed for a delay, effective DECSs may

become verified. Annual delays will be granted for a specified period of time

only.

Two methods of granting delays are proposed. Either the Executive Officer

would grant a blanket one-year compliance extension, or, if the owner has an

engine not granted a blanket one-year compliance extension, the owner may

apply for a compliance extension. Staff proposes if no DECS has been verified

for a specific engine or application, or one is not commercially available, by ten

months prior the implementation date for that group, then the Executive Officer

may grant a one-year implementation delay without requiring documentation from

the owner as to the unavailability of verified technology. Vehicle owners should

look for this implementation delay on the ARB’s website.

In the second case, a DECS could be verified for an engine, but not able to be

used in a specific application. In this case, staff proposes an owner may apply

no later than July 31st of the year for which he or she is requesting an extension.

The owner must provide documentation that DECSs have been investigated and

shown not to work on a particular engine or set of engines, or in the owner’s

vehicle application. Evidence convincing to ARB would include, for example, a

letter from a DECS manufacturer showing evidence of data collected that

demonstrates the DECS will not function on that particular vehicle because of its

duty cycle. Other examples of justified reasons for an owner applying for an

implementation delay would be if the owner has an engine in his fleet which is

used in a small number of collection vehicles in California and for which no

DECS has been verified, if the engine is under an original engine warranty and

application of a DECS would void that warranty, or if a DECS is not commercially

available. In these cases, the owner should provide sufficient documentation to

validate the need for a delay.

ARB has an existing procedure for responding to requests for extension as

codified in title 17, CCR, section 60030. When an extension is requested, the

Executive Officer of the ARB will respond to the collection vehicle owner that the
32

application has been received within 30 days of receipt, and that it is “complete

and accepted for filing or that the application is deficient and identify the specific

information required to make the application complete.” If additional information

has been requested to complete the application, within 15 days of receipt of that

information the Executive Officer will inform the collection vehicle owner of either

acceptance of the application for filing or of another deficiency in the application.

Within 90 days after the application is accepted for filing, the Executive Officer

will issue her approval or disapproval of the compliance extension request.

Staff proposes, however, an owner not be granted extensions indefinitely. Staff

proposes that if no DECS for a specific engine or application is available through

2007 for a Group 1 (MY 1988 – 2002) engine, the owner would be required to

use one of the following BACT: an engine that achieves the 0.01 g/bhp-hr PM

standard, or an alternative-fueled or heavy-duty pilot ignition engine, by

December 31, 2008. Similarly, for Groups 2 (MY 1960 – 1987) and 3 (MY 2003-

2006) collection vehicle engines, compliance extensions are not given for longer

than to December 31, 2011. The owner would, therefore, be required to employ

another BACT by December 31, 2011.

If an owner is granted a compliance extension for an engine, the owner should

apply the best available technology options to the maximum number of vehicles

that can be retrofitted up to the applicable percentage for each year. Thus, if the

applicable phase-in percentage is 25 percent, and the owner has received

compliance extensions for some engines, the owner is still required to apply

BACT to 25 percent of his fleet that year if possible. In the final year of each

group’s phase-in, if the owner still has some engines for which a delay has been

granted, the owner is allowed to delay until no more delays are available, at

which time the engine would be required to be scrapped, repowered to the 0.01

g/bhp-hr standard, or converted to an alternative-fueled, or heavy duty pilotignition engine.

3. Active Fleet with Fewer than Four Vehicles

An owner with three or fewer collection vehicles in his or her active fleet would be

able to delay the compliance deadline of any engine in Group 1 to December 31,

2007, and in Group 2 to December 31, 2010. No extensions will be granted for

Group 3. The owner need not apply for this extension, but if requested to justify

apparent non-compliance an owner would need to supply proof of the size of his

or her active fleet to ARB enforcement personnel.

G. Diesel Emission Control Strategy Special Circumstances

Owners would be required to maintain BACT on each vehicle once that vehicle is

in compliance. If the BACT is a DECS, an owner would not be required to

upgrade to a higher level of DECS if the DECS is functioning as verified. The

following special circumstances, however, would apply.
33

1. Failure or Damage of a Diesel Emission Control Strategy

For various reasons, a DECS might fail or be damaged during the lifetime of an

engine. The intent of this regulation is to reduce diesel PM emissions for the life

of an engine, therefore the owner is required to fix the failed or damaged DECS

or install a new one. For heavy heavy-duty engines, ARB requires that DECS

manufacturers provide, at a minimum, a commercial warranty of five years or

150,000 miles (title 13, CCR, section 2707). However, long-term usage on

heavy-duty vehicles has shown DPFs to last for more than 400,000 miles and

over four year, in some cases (Kimura 2003). The average collection vehicle

mileage is 15,635 miles per year.3

Staff proposes if a DECS fails or is damaged while it is within its warranty period,

the owner be allowed to repair or replace the DECS with the same or comparable

DECS, as provided under the DECS manufacturer’s warranty. If, however, the

DECS fails or is damaged outside of its manufacturer-provided warranty, staff

proposes the owner would be required to install the highest verified level DECS

available. If the owner had previously installed a Level 1 (25%+) DECS, for

example, and a Level 2 (50%+) or Level 3 (85%+) DECS is available, then the

owner would be required to upgrade the DECS to the higher level DECS.

2. Discontinuation of Fuel as a Diesel Emission Control Strategy

If an owner chooses to discontinue use of fuel verified as a DECS under section

2021.2 (b)(3) of the proposed regulation, the owner would be required to use

another BACT. In the event another BACT is not commercially available within

30 days from the date of discontinuation of a fuel verified as a DECS, the owner

would be required to submit a compliance plan to the Executive Officer no later

than 60 days after discontinuation of the use of the fuel verified as a DECS that

demonstrates how the owner will bring his or her vehicles into compliance within

six months. In other words, the owner is required to apply another BACT within

30 days unless no DECS is commercially available. In that case, the owner must

comply within six months.

3. Level 1 Diesel Emission Control Strategy

While use of a Level 1 DECS is approved in most cases by this proposed

regulation, the relatively low level of PM reduction (25 percent) is a concern.

Widespread use of Level 1 DECS would not achieve the goals set forth in the

DRRP (ARB 2000b) of 75 percent diesel PM reduction by 2010 and 85 percent

diesel PM reduction by 2020. Staff realizes, however, in some cases a Level 1

device may be the only verified DECS for a specific engine and application.

 

3

 ARB. 2001. Averages of survey of three solid waste collection vehicle companies.
34

Requiring immediate use of either an engine that meets the 0.01 g/bhp-hr PM

standard or an alternative-fuel or heavy-duty pilot-ignition engine might be overly

burdensome financially for the owner. As such, staff proposes a vehicle owner

be allowed to use a Level 1 DECS for a limited time period as a BACT. The time

limit for Group 1 (MY 1988 – 2002) is ten years.

The time limit on use of a Level 1 DECS for Group 2 (MY 1960-1987) for

companies with fewer than 15 vehicles is also ten years, but this special

circumstance may not be applicable as no Level 1 devices have been verified for

Group 2 engines. If an owner has 15 or more vehicles in his or her active fleet,

he or she may not use a Level 1 DECS on any Group 2 vehicle. If no DECS is

verified or available for Group 2 vehicles, then the owner would be eligible to

apply for a compliance extension, after which the owner would have to repower

or replace the engine as per sections 2021.2 (b)(1) or (b)(2).

Staff proposes that the time limit for use of a Level 1 DECS on Group 3 (MY

2003-2006) vehicles be five years.

4. Engine Retirement

An owner may retire an engine, either by selling it outside of the State of

California, scrapping the engine, or using it in a backup vehicle. If the engine is

within one year of retirement as of the applicable compliance date, then staff

proposes that the owner would not be required to install a DECS. Similarly, if an

installed DECS fails and it cannot be repaired, the owner of a vehicle within one

year of retirement would not be required to replace or upgrade the device. In

order for ARB to determine, for enforcement purposes, this engine is going to be

retired, the owner must maintain records both at the facility and on-board the

vehicle stating the retirement date. Otherwise, the owner would be subject to

enforcement for non-compliance. The owner would also be subject to

enforcement if he then kept the vehicle in the active fleet after the stated

retirement date and did not install the required DECS.

5. Use of Experimental Diesel Particulate Matter Emission Control

Technology

An owner may want to participate in a demonstration of experimental technology

designed to reduce diesel PM. This regulation requires the use of verified DECS,

and by its nature an experimental technology will not have received verification.

Staff, therefore, proposes an owner be allowed to install experimental technology

on no more than ten vehicles at any time in his active fleet for testing and

evaluation. Each vehicle being used for the demonstration would be deemed to

be in compliance with this rule for the duration of the experiment, provided the

experimental technology reduces diesel PM and a valid experimental permit has

been obtained from ARB. At the termination of the experiment, the experimental

technology should be removed, unless it has received appropriate verification
35

from ARB, and replaced with the verified DECS as required, within six months of

termination of the experiment.

H. Record Keeping

ARB proposes that owners keep records and make those records available for

inspection during enforcement audits by ARB personnel. Staff had previously

proposed in preliminary drafts of this regulation that owners submit records of

compliance to ARB, but has removed this requirement from the proposed

regulation after considerable consultation with interested persons. Staff is now

proposing only that owners maintain certain records, both at the terminal where

the vehicle normally resides and in the vehicle. If an owner is found to be out of

compliance with this regulation, enforcement may be taken against the owner.

1. Records Accessible at Terminal

Records to be kept at the terminal or facility where the vehicle normally resides

include a list of the collection vehicles covered by the proposed regulation which

identifies each vehicle type, engine manufacturer, engine model and engine

model year. That information must be tied to specific DECS that are installed in

each vehicle. DECS information includes the type of DECS, its serial number,

manufacturer, model, level, and date of installation, or first date of use if a fuel

DECS. If using a Level 1 or Level 2 verified DECS, the reason for choosing that

DECS must also be provided. This could simply be a statement that no Level 3

verified DECS were available. If a Level 3 verified DECS is available, then the

DECS manufacturer or authorized dealer must provide reasoning for not using

that DECS. DECS maintenance records would also need to be available. In the

case of fuel or fuel additives used as a DECS, purchase records would need to

be kept for the most current two years worth of purchases.

Backup vehicles, engines with planned retirement within one year, and engines

using experimental diesel PM DECS would need to be identified in the records as

well. Each backup vehicle would need to have its vehicle identification number

(VIN) and mileage recorded as of January 1st of each year beginning January 1,

2005. If the engine is exempt because it is to be retired within one year, the

owner must have records of the retirement date tied to specific engine

information, including VIN, engine manufacturer, engine model, and engine

model year. Similarly, this specific engine information must be kept with

documentation of the experimental program.

2. Records Kept in Vehicle

Staff also proposes owners be required to keep certain information in the vehicle,

which can be accessed during roadside inspections. Numerous individuals have

told staff that keeping information inside the vehicle is impractical, so ARB

suggests a label with the required information be affixed to the driver’s side door
36

jam, or in another readily accessible location known by the driver and readily

visible to an inspector. Illegible or inaccessible records would not be acceptable.

The information required is the same as that required under the Verification

Procedure in section 2706 (g), which includes the manufacturer’s name, address,

and phone number; the DECS family name; product serial number, month and

year of manufacture plus the date of installation of the DECS, or date of first use

if the DECS is a fuel.

Staff has concluded that any inconvenience to owners of being required to have

this information in the vehicle are out-weighed by the necessity for inspectors to

have information available during a roadside inspection verifying the DECS has

been installed. Otherwise, an inspector might have to dismantle a muffler

housing, for example, to determine that a diesel particulate filter was installed. In

addition, other regulations require certain records be kept in vehicles, such as

manifests, therefore staff believes it is not unreasonable to require these records

be kept in collection vehicles also.

I. Enforcement

A number of enforcement options exist with this regulation. The regulation may

be enforced by ARB on the collection vehicle owner or a municipality. For

collection vehicle owners, ARB staff may inspect the records kept at the facility

and, if they find the fleet is in non-compliance with the regulation may impose

penalties of up to $1000 per vehicle per day. If further investigation determines

the fleet owner neglected or intended to violate the regulation, then up to $10,000

per vehicle per day may be imposed on the collection vehicle owner.

ARB may impose similar penalties against municipalities for contracting with

collection vehicle owners in non-compliance with the regulation, or for not

submitting reports or for submitting false statements in the reports. Municipalities

may determine non-compliance either through lack of a signed statement of

compliance from the collection vehicle owner, or through notice from ARB that a

collection vehicle owner they contract with, permit, or license is in noncompliance, or through independent investigation by the municipality. Staff

believes this mechanism is likely to be the most effective means to compel

compliance, as the loss of a contract, permit, or license to operate and provide

service would significantly impact an owner’s ability to do business.

VI. AVAILABILITY AND TECHNOLOGICAL FEASIBILITY OF CONTROL

MEASURE

Diesel engines have long been the engines of choice for use in collection

vehicles because of the efficiency and durability of diesel engines, as well as the

operators' familiarity with diesel engine technology. Historically, a lack of viable

alternative-fuel engine technology for use in heavy-duty vehicle applications has

also maintained the dominance of the diesel engines. Existing and emerging
37

technologies are making both alternative-fuel engines and diesel engines options

for reducing toxic diesel PM emissions.

A. Availability of Best Available Control Technologies

Many options for reducing diesel PM emissions exist and are being developed in

order to comply with this proposed regulation. Both hardware strategies, such as

diesel particulate filters, diesel oxidation catalysts and repowering, and fuel and

fuel additive solutions are explored in the Technical Support Document. In

addition, the Technical Support Document discuses the in-use experience and

status of verification for each of the technologies. ARB conducted extensive

research into feasibility of these technologies in a number of studies, which are

also discussed in the Technical Support Document and its appendices.

B. Availability of Diesel Fuel with 15 ppmw or Less Sulfur Content

The use of diesel fuel with 15 ppmw or less sulfur content (“low sulfur”) will not be

mandated prior to the 2006 national implementation date unless it’s use is

required as a condition of verification for specific DECSs to achieve the verified

emission reductions. BP is the major producer and wholesaler of low sulfur

diesel at this time and the fuel is currently available at two terminals in California,

in Long Beach and Richmond. In response to market needs, BP has certified

fuel resellers to handle the low sulfur fuel, thus making the product widely

available in California by truck. BP is also selling low sulfur fuel through its

ARCO stations that carry diesel fuel.

Other fuel refiners are considering selling this fuel, but have not yet made it

available to the general market. This fuel will likely not be made available

through the pipeline distribution system until July 2006, at which time, low sulfur

diesel will be mandated to be available nationwide.

VII. REGULATORY ALTERNATIVES

No alternative considered by the ARB would be more effective in carrying out the

purpose for which the regulation is proposed nor would be both as effective and

least burdensome to affected private persons than the proposed regulation. A

comparison of emission reductions from each regulatory alternative considered

can be found at the end of this section (Table 13).

A. Do Not Adopt This Regulation

With full implementation of this control measure, the estimated reduction in diesel

PM ranges from 72 to 81 percent in 2010, and from 67 to 82 percent in 2020,

when compared to the not adopting this regulation (Figure 3). The

recommended actions in this plan will have a great impact on reducing the

localized risks associated with activities that expose nearby individuals to diesel
38

PM emissions. This diesel PM control measure will result in additional benefits

associated with reducing diesel PM emissions, including reducing NOx emissions

by 57 percent from baseline in 2010, reducing ambient fine PM levels, increasing

visibility, reducing material damage due to soiling of surfaces, and reducing

incidences of non-cancer health effects, such as bronchitis and asthma.

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2005 2010 2015 2020

Year

Inventory (tons/day)

Baseline

Proposal (average)

Figure 3. Comparison of Baseline and Proposed4 Diesel Particulate Matter

Inventory.

In not adopting this regulation ARB would be disregarding the potential risk

posed by diesel PM. In consideration of the potential health impacts discussed

earlier, and ARB’s mandate to protect the public health of all Californians, this

alternative is not considered a reasonable option. ARB staff does not

recommend this alternative because it would result in approximately 80 percent

greater PM emissions over the next few decades than the proposed plan, thus

adversely impacting the health of Californians.

B. Rely Only on Local Regulations in the South Coast Air Quality

Management District

As discussed earlier, the SCAQMD adopted Rule 1193, which requires collection

vehicle owners to purchase only alternative-fuel or dual-fuel vehicles when

 

4

The average of the three scenarios was used to construct this table.
39

replacing vehicles or adding to their fleets. SCAQMD estimated that in 2010 this

rule will reduce diesel PM emissions by 68 tons per year (or 0.19 tpd) and NOx

emissions by 695 tons per year (or 1.9 tpd) at a cost of $28,000 per ton of PM +

NOx. The rule, however, only applies to vehicles operating in the South Coast

Air Basin in fleets of 15 vehicles or more. Reliance on this rule would leave other

parts of the state to continue to suffer from unacceptable diesel PM levels. In

addition, because the rule does not address diesel PM emissions from current,

in-use vehicles, reductions in diesel PM will occur too slowly. ARB staff does

not, therefore, recommend this alternative because it would result in less diesel

PM emission reductions and would be effective only in the South Coast Air

Basin.

C. Rely on Federal Voluntary Program

The federal rules for new diesel engines will not begin to take effect for several

years and do not affect existing vehicles. As discussed earlier, the U.S. EPA

developed the Voluntary Diesel Retrofit Program to reduce diesel PM emissions

in the immediate future. The program addresses pollution from diesel

construction equipment and heavy-duty vehicles on the road today.

Although the U.S. EPA program is well suited for the nationwide needs of

voluntary retrofit programs, it is not sufficient for meeting ARB’s overall goals.

The large number of diesel engines in California, over 1.2 million, makes reliance

on a purely voluntary program unreasonable. ARB staff does not recommend

this alternative because it would result in less diesel PM emission reductions.

D. Require all Collection Vehicles to Repower with Engines Certified to

0.01 g/bhp-hr Particulate Matter Standard in 2007

Another alternative staff considered, which would result in similar, if not greater,

reductions in diesel PM emissions, is to require all collection vehicles to repower

with diesel engines certified to the 0.01 g/bhp-hr particulate standard in 2007.

This option is significantly more expensive than the proposed alternative. The

estimated capital cost of repowering all engines in 2007 is approximately $501

million, which is a factor of ten above the $73 million expected to implement this

proposed regulation, for a similar reduction in diesel PM. The estimated cost

could be even higher than this as many vehicles cannot be repowered. A

repower may be incompatible with older engine and drive train technology or the

size of the engine compartment, thus the owner would have to purchase a new

vehicle to accomplish the lower PM emissions. Nevertheless, some stakeholders

have favored this option despite the higher cost.

Staff predicts a complete turnover of collection vehicles by 2020 would reduce

diesel PM emissions by up to 90 percent as some owners would be eligible for a

financial hardship exemption. This is an estimated reduction of 1.0 tpd, which is

slightly higher than the recommended alternative in 2020 (Table 13). ARB staff
40

does not recommend mandating this as the sole option, however, because of the

high cost of implementation compared to the amount of PM emissions reduced

and significantly poorer cost effectiveness.

E. Require all Collection Vehicles to Convert to Alternative-Fuel Vehicles

Requiring all collection vehicles to repower or be replaced with alternative-fuel

engines, such as LNG engines, would result in elimination of diesel PM

emissions from these vehicles, with the exception of vehicles that might be

exempted because of an incompatible duty cycle or financial hardship. This

option is also significantly more expensive, costing $904 million for capital costs

alone, over twelve times the $73 million total in capital and operation and

maintenance (O & M) costs expected to implement this proposed regulation.

The amount of PM reduction would be slightly higher than the recommended

alternative. If we assume 85 percent of collection vehicles convert to alternativefuel by 2020, for example, the predicted emission reduction would be 0.95 tpd

compared to the proposal predicted emission reduction of 0.83 tpd in 2020

(Table 13). ARB staff does not recommend this alternative because it would be

significantly more costly than the recommended alternative without significantly

increasing the amount of PM emissions reduced. In addition, growing evidence

suggests that PM emissions from alternative fuel engines are not less hazardous

than PM emissions from diesel engines.

F. Require Collection Vehicles to Use Diesel Oxidation Catalysts as of

2005.

Another alternative is to require relatively inexpensive DOCs on collection

vehicles by 2005. ARB analysis concluded this option, while less expensive,

would achieve minimal diesel PM reductions (Table 13) of less than 25 percent.

Currently DOCs are only verified for 1991 and newer engines. This alternative

would never result in the 75 to 85 percent reductions expected with the proposed

regulation. ARB staff does not, therefore, recommend this alternative because it

would produce less diesel PM emission reductions and not achieve the goal set

in the Diesel Risk Reduction Plan.
41

Table 13. Diesel PM Reductions by Alternative Compared to the Proposal.

Regulatory Alternatives Reductions (tpd)

Year Proposal

(tpd) Adopt

Nothing SCAQMD Voluntary Repowerto 0.01

Repower

to Alt

Fuel

Require

all DOC

2010 1.1 0 0.19 n.q n.a n.a 0.31

2020 0.83 0 n.q n.q 1.0 0.95 0.24

n.q. – not quantified

n.a. – not applicable

VIII. ECONOMIC IMPACT

A. Legal Requirement

Sections 11346.3 and 11346.5 of the Government Code require state agencies

to assess the potential for adverse economic impacts on California business

enterprises and individuals when proposing to adopt or amend any administrative

regulation. The assessment shall include a consideration of the impact of the

proposed regulation on California jobs, business expansion, elimination, or

creation, and the ability of California business to compete.

State agencies are also required to estimate the cost or savings to any state or

local agency and school districts in accordance with instruction adopted by the

Department of Finance. This estimate is to include any nondiscretionary costs or

savings to local agencies and the costs or savings in federal funding to the state.

B. Affected Manufacturers

Businesses that may be affected as a result of the proposed regulation include

manufacturers of heavy heavy-duty diesel and alternative-fuel engines, collection

vehicles, engine retrofit kits, DECS, and advanced, alternative-fuel technologies,

such as CNG, LNG, dual-fuel and hybrid electric vehicles/engines. Since no

collection vehicle engine or vehicle manufacturer, either diesel or alternative-fuel

powered, is located in California, most impacts to these businesses, both positive

and negative, will occur in other states.

As of March 2003, seven DECS manufacturers are located in California5 and

may be positively affected by this regulation. Some diesel, natural gas and dualfuel collection vehicle assembly centers and distributors are located in California.

Since some solid waste vehicle owners may choose to purchase new diesel or

 

5

 The seven companies based in California are Cleaire, Clean Air Partners, Extengine, GTAT

California, KleenAir Systems, Olson Engineering, and Technical Associates. There may be

additional companies unknown to ARB.
42

alternative-fuel collection vehicles as a means to meet the proposed regulation

requirements, these manufacturers may experience a positive impact. Staff does

not expect the proposed regulation to significantly influence owners' decisions on

whether or not to purchase new vehicles though, as the difference in cost

between a new vehicle and a DECS is very large. An owner may purchase a

new vehicle sooner, rather than using a DECS, but staff does not expect this to

be a large effect.

C. Estimated Costs to Collection Vehicle Owners

The proposed regulation would impose costs on private, government-contracted

(publicly-contracted), and government (publicly-owned) residential and

commercial solid waste collection fleets statewide because of the proposed

requirement for diesel PM emission reduction. The following provides a

summary of the costs to private and publicly-contracted companies for complying

with the proposed regulation. The cost to publicly-owned agencies is discussed

in section VII.H.

Under the proposed diesel PM control requirement, collection vehicle owners are

responsible for selecting and implementing BACT. Publicly-owned agencies and

larger private, both publicly-contracted and not publicly-contracted, companies

typically turn over their fleets every five to ten years. The second owners of

these collection vehicles are generally smaller private companies. Staff has,

therefore, illustrated the cost using two scenarios: (1) a small private company

with ten vehicles, and (2) a large private company with 100 vehicles.

1. Implementation Scenarios

The implementation schedule dictates a phase-in by fleet and engine model year

(see Table 8). Staff assumed collection vehicle owners would choose the least

expensive of the BACT options to comply with this regulation. Staff, therefore,

assumed a DECS would be employed in lieu of more expensive options of

repowering or replacing the vehicle or engine, whenever possible. PM emissions

and exhaust temperatures dictate the type of DECS a collection vehicle can use.

Based on available data on DECS currently available to the entire collection

vehicle fleet, staff created three scenarios to determine economic impacts: the

first is based on currently verified DECSs (Table 14), the second assumes no

Level 2 DECSs are verified and is based on verifications of only Level 1 and 3

DECSs through the life of this rule (Table 15), and the third assumes that DECSs

will be verified at all three levels (Table 16). All three of these scenarios are

discussed in more detail in Section IV.B. and the Technical Support Document.
43

Table 14. Implementation Scenario (Current).

Technology Option (By Percent Phase-In)

Group Eng MY %BACT Implementation Date Level 1 Level 2 Level 3a Repower OEh 0.01

10% 12/31/2004 2.0% 8.0%

25% 12/31/2005 7.0% 8.0%

50% 12/31/2006 17.0% 8.0%

1 1994-2002g

32% of fleet

100% 12/31/2007 25.0% 5.0% 20.0%

10% 12/31/2004 10.0%

25% 12/31/2005 15.0%

50% 12/31/2006 25.0%

1 1991-1993g

14% of fleet

100% 12/31/2007 30.0% 20.0%

10% 12/31/2004

25% 12/31/2005

50% 12/31/2006

100% 12/31/2007 50.0%

1

1988-1990c

18% of fleet

Delay 12/31/2008 50.0%

25% 12/31/2007 22.8%

50% 12/31/2008 22.8%

75% 12/31/2009 22.8%

100% 12/31/2010 22.8%

2 1960-1987b

27% of fleet

Delay 12/31/2011 9.0%

50% 12/31/2009 14.1% 15.9% 20.0%

3

2003-

2006d,e

9% of fleet 100% 12/31/2010 14.1% 15.9% 20.0%

Percent of California’s Collection Vehicle Fleet Total: 30% 0% 12% 54% 4%

Notes:

a

 Only 1994-2002 MY engines were considered for passive diesel particulate filters based on

verification data. Assumption based on manufacturer with lowest engine exhaust temperature

requirement.

b

 Nine percent of 1960-1986 vehicles are owned by companies with less than 15 vehicles (63 percent

of surveyed companies).

c

 Assume all vehicles will repower and have BACT delays since no DECS are currently available.

d

 Assume current Level 3 verification will be extended to 2003-2006 MYs.

e

 Assume current Level 1 verification will be extended to 2003-2006 MYs.

f

 Assume small fleets (<15 vehicles) will have no DECS available and receive implementation delay

to 2011.

g

 Assume 20 percent repower even though DECS currently available to these model years due to

expected preference of some collection vehicle owners.

h

 Original equipment – purchased new.
44

Table 15. Implementation Scenario (Potential 1) - No Level 2 Verified.

Technology Option (By Percent Phase-In)

Group Eng MY %BACT Implementation Date Level 1 Level 2 Level 3a Repower OEg 0.01

1 1994-2002 f 10% 12/31/2004 2.0% 8.0%

32% of fleet 25% 12/31/2005 7.0% 8.0%

50% 12/31/2006 17.0% 8.0%

100% 12/31/2007 25.0% 5.0% 20.0%

1 1991-1993c, f 10% 12/31/2004 10.0%

14% of fleet 25% 12/31/2005 15.0%

50% 12/31/2006 25.0%

100% 12/31/2007 30.0% 20.0%

1 1988-1990c, f 10% 12/31/2004 10.0%

18% of fleet 25% 12/31/2005 15.0%

50% 12/31/2006 25.0%

100% 12/31/2007 30.0% 20.0%

2 1960-1987b,c, f 25% 12/31/2007 2.3% 22.8%

27% of fleet 50% 12/31/2008 2.3% 22.8%

75% 12/31/2009 2.3% 22.8%

100% 12/31/2010 2.3% 22.8%

3 2003-2006d,e 50% 12/31/2009 14.0% 16.0% 20.0%

9% of fleet 100% 12/31/2010 14.0% 16.0% 20.0%

Percent of California’s Collection Vehicle Fleet Total: 47% 0% 12% 37% 4%

Notes:

a

 Only 1994-2002 MY engines were considered for passive diesel particulate filters based on

verification data.

Assumption based on manufacturer with lowest engine exhaust temperature requirement.

b

 Nine percent of 1960-1986 vehicles are owned by companies with less than 15 vehicles (63 percent

of surveyed companies).

c

 Assume current Level 1 verification will be extended to 1960-1993 MYs.

d

 Assume current Level 3 verification will be extended to 2003-2006 MYs.

e

 Assume current Level 1 verification will be extended to 2003-2006 MYs.

f

 Assume 20 percent repower even though DECS either currently or expected to be available to these

model years due to expected preference of some collection vehicle owners.

g

 Original equipment – purchased new.
45

Table 16. Implementation Scenario (Potential 2) – All Levels Verified.

Technology Option (By Percent Phase-In)

Group Eng MY %BACT Implementation Date Level 1 Level 2 Level 3a Repower OEh 0.01

10% 12/31/2004 2.0% 8.0%

25% 12/31/2005 7.0% 8.0%

50% 12/31/2006 17.0% 8.0%

1 1994-2002 c, e

32% of fleet

100% 12/31/2007 25.0% 5.0% 20.0%

10% 12/31/2004 10.0%

25% 12/31/2005 15.0%

50% 12/31/2006 25.0%

1 1991-1993c,e

14% of fleet

100% 12/31/2007 30.0% 20.0%

10% 12/31/2004 2.0% 8.0%

25% 12/31/2005 2.0% 13.0%

50% 12/31/2006 2.0% 23.0%

1 1988-1990c,e,f

18% of fleet

100% 12/31/2007 2.0% 28.0% 20.0%

25% 12/31/2007 2.0% 0.25% 22.75%

50% 12/31/2008 2.0% 0.25% 22.75%

75% 12/31/2009 2.0% 0.25% 22.75%

2 1960-1987b,e,f

27% of fleet

100% 12/31/2010 2.0% 0.25% 22.75%

3 2003-2006d,e 50% 12/31/2009 14.0% 16.0% 20.0%

9% of fleet 100% 12/31/2010 14.0% 16.0% 20.0%

Percent of California’s Collection Vehicle Fleet Total: 4% 43% 12% 37% 4%

Notes:

a

 Only 1994-2002 MY engines were considered for passive diesel particulate filters based on

verification data. Assumption based on manufacturer with lowest engine exhaust temperature

requirement.

b

 Nine percent of 1960-1986 vehicles are owned by companies with less than 15 vehicles. (63

percent of surveyed companies.)

c

 Assume 20 percent repower even though DECS currently or expected to be available to these

model years due to expected preference of some collection vehicle owners.

d

 Assume current Level 3 verification will be extended to 2003-2006 MYs.

e

 Assume a PuriNOx+DOC Level 2 could be verified for all model years.

f

 Assume a small percentage of fleet may not be able to use Level 2 devices.

g

 Assume low sulfur fuel used for only installed diesel particulate filters before 2006.

h

 Original equipment – purchased new.

2. Implementation Costs

The initial cost per truck will vary depending on the BACT used for the truck. The

initial costs listed in this section are based on capital and O & M costs applied to

the scenarios. Staff assumed that a vehicle owner would use the least cost

alternative for compliance and attributed that cost to the rule. Capital costs per

vehicle and technology for various DECS options are listed in Table 17. Staff

assumed no capital cost would be required for collection vehicle owners that

used the fuel-water emulsion option. O & M costs will be higher from fiscal years
46

2004 to 2005 to account for the incremental costs of fuel and fuel transportation

(Table 18) for the diesel particulate filters and oxidation catalysts that will be

required to use low sulfur diesel fuel. After July 1, 2006, this added cost will

disappear, because the federal low sulfur diesel fuel rule will mandate low sulfur

fuel for use by all on-road diesel vehicles and, therefore, no incremental costs

are associated with its use. Costs to vehicle owners will vary depending on

individual company implementation schedules.

Table 17. Average Capital Costs for Diesel Emission Control Strategies.

Average Cost ($)

Cost Description

Passive Diesel

Particulate Filter a, b

Active Diesel

Particulate Filter e,f

Diesel Oxidation

Catalyst g,h,I,j

Device 3,980 10,500 2,830

Installation c, d 290 290 290

Engine Backpressure

Monitor k

1,000 1,000 0

Total Cost: $5,260 $11,790 $3,120

Note: Costs and how they are derived are described in detail in Appendix F.

aMECA, November 2000, Study of DECS costs. 100-500 hp for varying production costs.

b

 U.S. EPA, May 2000, Draft RIA. Cost in 2007, pg. V-9.

cU.S. EPA, May 2000, Draft RIA. Includes trap cost, labor, warranty and muffler removal savings.

d

ARB, June 2001. Installation cost for a muffler through phone conversations with Cummins,

Golden State Ford Truck Sales, Caterpillar, and Performance Truck and Diesel.

e

ARB, 2002. Cost to ARB demonstration program (device plus regeneration unit)

f

 ARB, October 2001. Cost quoted to ARB at Oct. 2001 meeting with active diesel particulate

filters providers from Europe

gMECA, March 2000. Emission Control Retrofit of Diesel-Fueled Vehicles.

hClean Air Counts, 2002.

i

Fuelstar, 2000.

j

Parsons, February 2001.

kCost given at September 4-5, 2001 workshop by MECA members.
47

Table 18. Incremental Operation and Maintenance Costs for a Retrofitted

Collection Vehicle.

Average Cost for Passive and

Active DPF and DOC ($)

Average Cost

for Fuel-Water

Emulsion ($)

Cost Description

FY 2004 to

2005

FY 2006 and

beyond

FY 2004 and

beyond

Increased Maintenance/Cleaning - 1 hour 80a80 0

Incremental Fuel 200b0 2,750 d

Incremental Fuel Transportation 230c0 0

Total: $510 $80 $2,750

Note: Costs and how they are derived are described in detail in Appendix F.

a

Johnson Matthey Guidelines and phone conversation on 6/12/01; MECA meeting 5/19/2001.

bDiesel Fuel News, 5/14/01, Vol. 5(10); U.S. EPA, 5/00, Draft RIA.; BP, 6/21/01, meeting.

c

Benetto, Inc., June, 20 2001.; Diamond Truck Lines. June 20, 2001.

d

ARB, 2002. Cost quoted to ARB Verification Program.

The cost to repower an engine to meet a 0.01 g/bhp-hr PM emission standard

(2007 or later MY) will vary according to the engine model year and vehicle type

from which it is being converted. Replacing an electronically-controlled fuel

injection engine (1994 and newer MYs) with a 2007 or later MY engine is

expected to cost less than replacing a mechanically-controlled fuel injection

engine of earlier vintage due to the challenges associated with conversion of

mechanical to electronic systems. In some instances it may not be possible to

upgrade engines because of space constraints in the engine compartment of the

vehicle. An owner would, therefore, need to consider using a DECS or replacing

the entire vehicle. In other cases it may be more cost effective to comply by

replacing a pre-1994 MY engine with a 1994 to 2006 MY engine and installing a

diesel particulate filter.

To determine the costs associated with repowering an engine to meet the 0.01

g/bhp-hr PM emission standard ARB staff surveyed engine providers. Based on

the data, the average total cost is $45,000, with a range of $21,000 to $90,000,

depending on the engine manufacturer, model, and model year. A DECS, likely

a diesel particulate filter, will also be required, which brings the average cost to

$50,000 (Table 19).

Table 19. Engine Repower.

New Engine Plus Installation Cost

Average Cost of Repower $45,000

Average Cost of DECS $5,000

Average Total Cost: $50,000

While not quantified, two benefits offset the initial cost of repowering an engine,

increased fuel economy and decreased maintenance costs. The fuel economy
48

benefit will vary depending on the engine replaced, but as collection vehicles

typically achieve only two to three miles per gallon, any fuel economy benefit

would result in a significant savings, helping the owner recoup the costs

associated with the repower. Similarly, decreased maintenance would result in

increased time on the road and fewer repair costs, thus reducing repower costs.

D. Potential Impact on Small Businesses

Staff calculated the average cost for a small fleet of ten vehicles, the typical sized

fleet of collection vehicles in California. Staff assumed 80 percent of the vehicles

would fall under Group 1 (MY 1988 – 2002), and 20 percent of the vehicles would

fall under Group 2 (MY 1960 – 1987) implementation phase-in. For comparison,

staff also calculated the average cost for a large fleet of 100 collection vehicles.

For the large company staff assumed 80 percent of the vehicles would fall under

Group 1, and 20 percent under Group 3 (MY 2003 – 2006) implementation

phase-in, because larger companies are assumed to only keep vehicles for five

to ten years. The average total estimated costs for a large and small private

company to implement this regulation between fiscal years 2004 and 20106 are

$420,000 and $47,600, respectively (Table 20).

 

6

 Assumes costs paid for during the year leading up to December 31st implementation.
49

Table 20. Estimated Average Cost to a Small or Large Fleet Collection Vehicle

Owner Based on the Average of Three Implementation Scenarios.

Fleet

Number

of

Vehicles

Retrofit

Calendar

Years

Discounted

Annual

Capital Costs a

Average

Annual O&M

Costs b

Total

Average

Annual

Cost

Small

Varies 2004 – 2005 $100 $600 $700

Varies 2005 – 2006 $300 $2,200 $2,500

Varies 2006 – 2007 $400 $4,000 $4,400

Varies 2007 – 2008 $2,600 $4,400 $7,000

Varies 2008 – 2009 $5,700 $4,100 $9,800

Varies 2009 – 2010 $5,700 $3,900 $9,600

Varies 2010 – 2011 $10,000 $3,600 $13,600

10 Total: $24,800 $22,800 $47,600

Large

Varies 2004 – 2005 $2,000 $2,000 $4,000

Varies 2005 – 2006 $5,000 $14,000 $19,000

Varies 2006 – 2007 $9,000 $29,000 $38,000

Varies 2007 – 2008 $55,000 $32,000 $87,000

Varies 2008 – 2009 $52,000 $29,000 $81,000

Varies 2009 – 2010 $62,000 $29,000 $91,000

Varies 2010 – 2011 $70,000 $29,000 $99,000

100 Total $255,000 $164,000 $419,000

a

 Derived from capital costs using A = (Net Present Value)*(Capital Recovery Factor of 0.07).

b

 Discounted average annual O&M costs for fiscal years 2004 and 2005, include incremental fuel

and fuel transportation costs for those vehicle using DECS requiring low sulfur diesel fuel.

As described in the cost effectiveness methodology (Appendix F), in order to

translate the capital costs into annualized capital costs, staff used the cost

recovery factor of 0.077. For a small fleet of ten collection vehicles, including

both annualized capital, such as the DECS, and O & M costs, such as fuel, the

average total cost over the implementation phase-in period from fiscal year 2004

to 2010 would range from a minimum of $29,600 to a maximum of $77,400 and

have an average total cost of $47,600. For a large fleet of 100 collection

vehicles, the total cost would range from $236,000 to $728,000 with an average

cost of $419,000. This accounts for variability found in implementing a full range

of BACT as discussed in the implementation scenarios based on Current,

Potential 1 and Potential 2 verification of DECS.

 

7

 Capital recovery factor is r(1+r)^N/[(1+r)^N-1] (Linsley, 1977), where r = 0.07 discount rate, and

N = 5 years.
50

E. Potential Impact on Businesses

The regulation allows collection vehicle owners a variety of options to meet the

proposed regulation requirements. The proposed regulation may have some

cost impact on companies involved in the manufacture and production of engines

and collection vehicles by creating the need for new engines and vehicles. The

regulation may also impact fuel distributors because it requires early usage of

low sulfur diesel fuel. Currently, no solid waste collection engine manufacturers

and no solid waste vehicle chassis manufacturers are located in California.

Two solid waste vehicle body manufacturers are located in California. No cost to

these manufacturers would exist, although they may experience benefits from

increased business due to a potential increase in purchase of new vehicles as a

means to meet BACT. Costs to comply with this diesel PM control measure

would be borne by the collection vehicle owner. These manufacturers may

choose to reduce diesel PM emissions voluntarily by installing DECS before

selling new and used vehicles and engines to vehicle owners, but staff expects

they would charge for the installation. Specific to the retrofit requirements,

California businesses capable of performing engine retrofits will be positively

affected with increased workload. As well, the seven DECS manufacturers

located in California may be positively affected by this regulation.

F. Potential Impact on Business Competitiveness

The proposed regulation is not expected to impact the ability of California

businesses to compete with businesses in other states. As indicated above,

many of the businesses that produce the products needed to meet the proposal

are located in other states. By requiring new, clean technology, this proposal

may actually provide new opportunities for California businesses engaged in

advanced technology.

Solid waste collection is, in general, an intrastate activity. Recycling is not. By

restricting the scope to residential and commercial collection vehicles in this

regulation and not transfer vehicles, staff is attempting to ensure interstate

recycling companies will not be adversely affected or unable to compete in the

recycling market. Staff also attempted to minimize adverse effects on intrastate

business competitiveness by allowing for phase-in of the requirements, giving all

vehicle owners time to budget for compliance.

G. Potential Impact on Employment

The proposed regulation will likely create a market for manufacturers of heavyduty diesel or natural gas solid waste collection engines, vehicles, and emission

control systems. For those businesses located in California, the creation of new
51

jobs is expected to meet this demand. Services to retrofit existing collection

vehicles are expected to create new opportunities for existing businesses.

H. Potential Impact on Business Creation, Elimination or Expansion

The proposed regulation could impact California companies involved in the

manufacture and production of engines, collection vehicles, and DECS.

Currently, no solid waste engine or vehicle chassis manufacturers, two collection

vehicle body manufacturers, and seven DECS manufacturers are located in

California. Allowing new, cleaner engine and collection vehicle purchases as a

means to meet the diesel PM control measure could create new business

opportunities for manufacturers of heavy-duty diesel or natural gas bus engines,

collection vehicles, and DECS. While most businesses that could benefit from

the increased business are located outside of California, the total impact on

California business will be determined by the extent to which these companies

choose to expand in California. This expansion is a result of the expected new

business opportunities created by the need for cleaner transportation

technologies.

Staff believes this regulation would not significantly impact independent fuel

distribution companies. Collection vehicles represent only one percent of the

entire diesel-fueled fleet in California and use relatively few gallons of diesel fuel

annually in comparison to other fleets.

I. Potential Costs to Local and State Agencies

The proposed regulation is expected to have an impact on public agencies

statewide that contract with or own solid waste collection fleets. The following

provides a summary of the costs to agencies for complying with the proposed

regulation.

Under the proposed requirements, agencies are responsible for installing BACT.

Since most public fleets have a fleet turnover rate of about five to seven years,

we assumed 80 percent of the vehicles would fall under Group 1, and 20 percent

of the vehicles under Group 3. From our inventory of collection vehicles, a total

of 1,280 collection vehicles are owned by public agencies; 56 by state agencies

(California Department of Transportation or Caltrans), six by federal military

agencies, and the remainder by local agencies, such as city and county

governments. Based on our vehicle and engine survey, the average number of

vehicles owned by public agencies affected by this regulation is 55.

Caltrans and federal agencies will likely not be affected by this regulation as it

only applies to those agencies that collect residential and commercial solid waste

for a fee. The total estimated statewide cost for local government agencies with

solid waste collection fleets would range from $2,869,000 to $8,863,000 with a

total average cost of $5,114,000 (Table 21) over the entire implementation
52

phase-in period for the three implementation scenarios based on Current,

Potential 1, and Potential 2 verification scenarios.

Table 21. Total Estimated Statewide Cost for Local Government Agencies

Based on the Average of Three Implementation Scenarios.

Fiscal Year Discounted Annual

Capital Costs a

Average Annual

O&M Costs b

Total Average

Annual Cost

2004 – 2005 $29,000 $30,000 $59,000

2005 – 2006 $63,000 $165,000 $228,000

2006 – 2007 $106,000 $356,000 $462,000

2007 – 2008 $667,000 $384,000 $1,051,000

2008 – 2009 $637,000 $359,000 $996,000

2009 – 2010 $751,000 $359,000 $1,110,000

2010 – 2011 $850,000 $358,000 $1,208,000

TOTAL $3,103,000 $2,011,000 $5,114,000

For public agencies that contract with private solid waste collection companies,

an increase in the contract cost may occur within the terms of the contract or at

the renewal of the contract.

J. Cost to the Average Household Receiving Waste Collection Service

Municipalities, or collection vehicles owners directly, are expected to pass

through the cost to implement the proposed regulation on to ratepayers. The

total cost per household in California, over the implementation period of fiscal

year 2004 to 2010, would be approximately $5.90, or $0.85 annually. This figure

was derived from dividing the total statewide dollar costs that businesses and

individuals may incur from this proposed regulation over its lifetime of about

$73,100,000 by the number of estimated households in California from fiscal year

2004 to 2010, or 12,500,000 households (Center for Continuing Study of the

California Economy 2001).

IX. Environmental Impacts and Cost-Effectiveness

The proposed regulation would provide significant cost-effective diesel PM

emission reductions throughout California, especially at the neighborhood level.

The air quality benefits statewide would be not only from reduction of diesel PM

emissions, but also from reduction of NOx, HC, and CO emissions as well. For

the purposes of the cost effectiveness analysis, staff not only considered the

benefits of reducing diesel PM, but also the benefits from reducing HC and NOx

emissions. Furthermore, cancer risk as a result of exposure to diesel PM will be

reduced by a factor of ten from a high of about 31 cases per million to about

three in a million in the highest exposed areas (See Section III. F.). In

determining costs associated with air quality benefits, staff relied on the results of
53

an extensive survey of the solid waste management industry and queries of the

DMV database.

A. Benefits

1. Statewide Benefits

ARB staff estimates the proposed diesel PM control measure would result in the

reduction of between 1.03 and 1.15 tpd of diesel PM emissions in 2010 and

between 0.75 and 0.91 tpd diesel PM reduced in 2020 (Table 22). The reduction

of diesel PM emissions attributed to this regulation peaks around 2010 because

all collection vehicles are expected to meet the diesel PM control measure by

2010. After 2010 the benefits attributed to this regulation decline to between

0.75 and 0.91 tpd in 2020 as vehicles are retired and replaced with new engines

that meet the federal 2007 0.01 g/bhp-hr PM standard.

Table 22. Statewide Diesel PM Emission Reduction Benefits.

Diesel PM Reduction (tpd) Calendar

Year

Baseline

Inventory

(tpd) Current Potential 1 Potential 2

2005 1.57 0.05 0.09 0.15

2010 1.42 1.15 1.03 1.12

2015 1.36 1.16 0.97 1.06

2020 1.12 0.91 0.75 0.84

Other air quality benefits also exist as a result of the use of the various BACT,

including reduced emissions of CO, HC, and NOx. The reductions in HC are

also accounted for in the State Implementation Plan. Based on expected

reduction capabilities from the various DECS that might be used (Table 23),

reductions of up to 9.44 tons of CO per day (Table 24), 3.69 tons of HC per day

(Table 25), and 20.5 tons of NOx per day (Table 26) are predicted.
54

Table 23. Other Pollutant Potential Reductions from Diesel Emission

Control Strategies.

Emission Reduction (Percent)

Diesel Emission Control Strategy PM CO HC NOx

Passive Diesel Particulate Filter 85a90b95b0

c

Fuel-Water Emulsionh50a35d60d50d

Average Diesel Oxidation Catalyst 25a47e, f 76e, f 0

c

a

Verified Level Reduction Goals for ARB. Strategies will not be verified without meeting this

standard at a minimum.

b

Allansson, R, Cooper, BJ, Thoss, JE, Uusimaki, A, Walker, AP, Warren, JP, 2001, European

Experience of High Mileage Durability of Continuously Regenerating Diesel Particulate Filter

Technology. SAE. 2001-01-0480.

cMajewski, W. Addy, 2001, Diesel Net Technology Guide: Diesel Particulate Traps.

www.dieselnet.com.

dDiesel Net Technology Guide: Emission Control Technologies, 1998. www.dieselnet.com.

eDiesel Net Technology Guide: Diesel Oxidation Catalyst, 1999. www.dieselnet.com.

f

Khair, Magdi; McKinnon, Dale L. Performance Evaluation of Advanced Emission Control

Technonlogies for Diesel Heavy-Duty Engines. SAE. 1999-01-3564.

h

Fuel-water emulsion increases CO and HC emissions. Although can be verified alone for the

purposes of simplifying calculations, assumed it would be used in conjunction with a diesel

oxidation catalyst to decrease impact of increase. Choose least decrease to account for offset of

increase from fuel-water emulsion.

Table 24. Statewide Diesel Carbon Monoxide Emission Reduction Benefits.

Diesel CO Reduction (tpd) Calendar

Year

Baseline

Inventory

(tpd) Current Potential 1 Potential 2

2005 11.9 0.70 1.20 0.80

2010 11.8 9.11 9.44 8.86

2015 11.5 9.24 9.02 8.23

2020 9.59 7.15 7.00 6.44

Table 25. Statewide Diesel Hydrocarbon Emission Reduction Benefits.

Diesel HC Reduction (tpd) Calendar

Year

Baseline

Inventory

(tpd) Current Potential 1 Potential 2

2005 4.20 0.27 0.45 0.38

2010 4.10 3.45 3.69 3.55

2015 3.90 3.49 3.45 3.35

2020 3.04 2.59 2.60 2.50
55

Table 26. Statewide Diesel Oxides of Nitrogen Emission Reduction

Benefits.

Diesel NOx Reduction (tpd) Calendar

Year

Baseline

Inventory

(tpd) Current Potential 1 Potential 2

2005 33.8 0 0 0

2010 27.4 16.2 13.0 18.1

2015 31.5 19.3 14.6 20.5

2020 27.5 15.6 11.3 17.0

2. Impacts on the State Implementation Plan for PM10

The anticipated benefits of this proposed rule is part of the draft State

Implementation Plan (SIP) for PM10 in the San Joaquin Valley. That plan is

scheduled for adoption in June 2003, with attainment of the federal PM10

standard projected by 2010. As a “serious” nonattainment area, the San Joaquin

Valley must use best available control measures for all sources of PM10 in its

district and must also achieve five percent annual emission reductions in PM10

and its precursors. The San Joaquin Valley has seven percent of the statewide

solid waste collection vehicles and will see a benefit of 0.07 to 0.08 tpd of PM

reduced by 2010. In addition, the NOx and volatile organic carbon (VOC)

benefits of the proposed rule are contained in the plan, as they are precursors to

secondary PM formation.

The South Coast air basin is also classified as “serious” for PM10 but it attainment

deadline is 2006, before most of the benefits of the proposed rule will be

achieved. Nonetheless, the proposed rule will help that District maintain

compliance with the federal PM10 standard. The rule also serves as a down

payment on future plans to achieve the federal PM2.5 standards and California’s

own, more stringent standards. Thirty-five percent of California’s solid waste

collection vehicles are in the South Coast region. By 2010, the proposed rule will

reduce emissions from those vehicles by 0.36 to 0.40 tpd.

All other PM10 nonattainment areas in California will benefit from the proposed

rule in a general way. Every district buy Lake County is nonattainment for the

California PM10 standard. In addition, four other areas in California are

nonattainment for the federal PM10 standards: Owens Valley, Searles Valley,

Coachella Valley, and Imperial Valley.

For ozone SIPs there is a similar situation. The South Coast and San Joaquin

Valley have new federal ozone plans under development, with adoption

tentatively scheduled for September 2003 and December 2003, respectively.
56

Both districts have an attainment deadline of 2010 for the federal one-hour ozone

standard. The overall NOx and VOC benefits of ARB’s planned diesel in-use PM

reduction rules are contained in the draft South Coast ozone plan and will be

included in the San Joaquin Valley ozone plan once it is released for public

review. The Sacramento Metropolitan region is considering an ozone plan

update and would include ARB’s diesel in-use PM reduction control measures if

its attainment deadline ultimately shifts from 2005 to 2010.

As with PM10, all other ozone nonattainment areas in California will benefit from

the proposed rule in a general way as it reduces the precursors to ozone

formation (see Tables 25 and 26).

3. Cost-Effectiveness of Proposed Regulation

The estimated average cost-effectiveness of this proposed diesel PM emission

reduction regulation, considering only the benefits of reducing diesel PM, is

approximately $28/lb of PM reduced annually from fiscal years 2004 to 2010.

This rule will also result in significant emission reductions of HC and NOx,

however, thus it is valid to allocate half of the cost of compliance to the benefits

of HC and NOx reduction. The cost-effectiveness for reducing HC and NOx,

which are ozone precursors and contributors to secondary PM formation, is

$0.71/lb HC+NOx. The cost-effectiveness of PM reduction declines to $13/lb

when half of the cost of compliance is allocated to HC+NOx reduction in this way.

The costs and emission reductions associated with this regulation and how they

were derived are discussed in Appendix F. Both capital costs, such as the

purchase and installation of a DECS or new engine, and O & M costs, such as

incremental fuel cost for low sulfur diesel fuel, are included in this analysis.

The cost-effectiveness of this regulation is consistent with the predicted costs

associated with other regulations. Other California mobile source regulations

adopted over the past decade had cost-effectiveness values ranging from $0.17

to $2.55/lb of ozone precursors reduced. The cost-effectiveness of the fleet rule

for transit agencies, which calculated the cost effectiveness by allocating all of

the costs to reducing diesel PM, was $25/lb of PM reduced.

B. Potential Negative Impacts

Certain potential negative impacts could be associated with elements of this

proposed regulation. Those potential negative impacts are discussed below.

1. Creation Of Nitrogen Dioxide By Passive Catalyzed Diesel Particulate

Filters

Measurements of NOX emissions for heavy-duty diesel vehicles equipped with

passive catalyzed filters have shown an increase in the portion of NO2 emissions

in total NOX emissions, although the total NOX emissions remain approximately
57

the same. The passive catalyzed filters oxidize some of the nitrogen oxide (NO)

emissions to NO2 to burn soot captured in the filter. More NO2 is created than is

actually being used in the regeneration process; and the excess is emitted. The

NO2 to NOX ratios could range from 20 to 70 percent, depending on factors such

as the diesel particulate filter systems, sulfur level in diesel fuel, and the duty

cycle (DaMassa 2002).

Formation of NO2 is a concern because it irritates the lungs and lowers

resistance to respiratory infections. Individuals with respiratory problems, such

as asthma, are more susceptible to the effects. In young children, nitrogen

dioxide may also impair lung development.

In addition, even though a relatively small portion of collection vehicles are

expected to use diesel particulate filters, model simulations based on a 90

percent market penetration of diesel particulate filters with assumed NO2 to NOx

ratios at 15, 20, 25, 30, and 50 percent, found a NO2 to NOX emission ratio of

approximately 20 percent would nearly eliminate any impact of increased NO2

emissions (ARB, 2002a; Table 27). According to the model, at the NO2 to NOx

ratio of 20 percent, there will be a decrease of the 24-hour ozone exposure

(greater than 90 parts per billion) by two percent while an increase of the peak 1-

hour NO2 by six percent (which is still within the NO2 standard). The health

benefits derived from the use of PM filters are immediate and offset the possible

adverse effects of increases in NO2 emissions. For this reason, a cap of 20

percent NO2 to NOX emission ratio was established for all DECSs through ARB’s

Verification Procedure.

Table 27. Summary of Potential Impact from Modeled NO2/NOx Ratios.

Diesel NO2/NOx Ratios: 15% 20% 25% 30% 50%

Summer 24-hour O3 Exposure >90 ppb (%) -3 -2 0 +2 +5

Winter Peak 1-hr Exposure NO2 (%) +1 +6 +12 +18 +41

2. Diesel Oxidation Catalyst Emissions and Disposal

Two potential adverse environmental impacts of the use of diesel oxidation

catalysts have been identified. First, as is the case with most processes that

incorporate catalytic oxidation, the formation of sulfates increases at higher

temperatures. Depending on the exhaust temperature and sulfur content of the

fuel, the increase in sulfate particles may offset the reductions in soluble organic

fraction emissions. Using low sulfur diesel fuel can minimize this effect. Second,

a diesel oxidation catalyst could be considered a “hazardous waste” at the end of

its useful life depending on the materials used in the catalytic coating. However,

diesel oxidation catalysts are usually recycled for their precious metal content
58

and thus are not managed as hazardous wastes in practice. Recycling also

reduces any potential impact on landfill capacity.

3. Ash Management

Diesel particulate filter technology may generate a new hazardous waste stream.

The carbonaceous component of the PM captured by the filter is burned off when

the filter regenerates. Any inorganic components left behind after regeneration

as ash in the filter must eventually be cleaned from the filter. Based on

preliminary data from two samples, the ash may be classified as hazardous

waste because of its zinc content.

Ash collected from a diesel engine using a typical lubrication oil and no fuel

additives has been analyzed and is primarily composed of oxides of the following

elements: calcium, zinc, phosphorus, silicon, sulfur, and iron. Zinc is the element

of primary concern because, if present in high enough concentration, it can make

a waste a hazardous waste. Title 22, CCR, section 66261.24 establishes two

limits for zinc in a waste: 250 milligrams per liter for the Soluble Threshold Limit

Concentration and 5,000 milligrams per kilogram for the Total Threshold Limit

Concentration. The presence of zinc at or above these levels would cause a

sample of ash to be characterized as a hazardous waste.

Under California law, it is the generator's responsibility to determine whether their

waste is hazardous or not. Applicable hazardous waste laws are found in the

HS&C, division 20; title 22, CCR, division 4.5; and title 40 of the Code of Federal

Regulations. Staff recommends owners that install a diesel particulate filter on a

vehicle contact both the manufacturer of the DECS and the California

Department of Toxic Substances Control (DTSC) for advice on waste

management.

ARB staff has consulted with personnel of the DTSC regarding management of

the ash from diesel particulate filters. DTSC personnel have advised ARB that it

has a list of facilities that accept waste from businesses that qualify as a

conditionally exempt small quantity generator. Such a business can dispose of a

specific quantify of hazardous waste at certain Household Hazardous Waste

events, usually for a small fee. An owner who does not know whether or not he

qualifies or who needs specific information regarding the identification and

acceptable disposal methods for this waste should contact the California DTSC.8

X. ISSUES

Over the course of development of this proposal, staff has met many times with

various stakeholders and received written and verbal comments. Although staff

has considered each comment, not all issues could be resolved and achieve

 

8

 Information can be obtained from local duty officers and from the website:

http://www.dtsc.ca.gov.
59

ARB’s goals to reduce diesel PM emissions from solid waste collection vehicles.

Following is a discussion of major outstanding issues.

A. Cost Recovery by Rate-Regulated Companies

The main issue raised by the industry workgroup to ARB is cost recovery by

companies that have their rates regulated by contract with a municipality. These

companies, termed “rate-regulated,” have long-term contracts and are unable to

raise their rates without amending their contracts. As a municipality is often

under no obligation to amend the contract until its term is up, the industry

workgroup members felt that rate-regulated companies would be at risk of losing

profitability because of this proposed regulation.

The industry workgroup therefore recommended ARB require municipalities to

bear full responsibility for implementation of the regulation. Collection vehicle

owners under contract would not be directly obligated to comply, but rather ARB

would enforce against the appropriate municipality if a vehicle was found to be

out of compliance. For example, if a collection vehicle working in a specific city

on a specific day were found to be out of compliance, that city would be subject

to enforcement. By placing the responsibility of implementation on the

municipalities, workgroup members felt the financial burden would also be placed

upon the municipalities and that rates would be raised to cover the compliance

costs.

Staff agrees compliance costs should be reflected in solid waste collection

contracts and related fees passed onto households. The industry workgroup

proposal, however, creates other issues that will complicate and potentially

frustrate implementation. Imposing the burden of implementation on a

municipality that has a contract with a solid waste collection company would

make the municipality the de facto owner of the vehicle. The municipality,

however, does not make purchasing or leasing decisions regarding the vehicles,

although it may specify the types of vehicles acceptable through the contract. In

addition, the municipality does not employ the maintenance staff, nor schedule or

supervise maintenance. Further, placing this responsibility directly on

municipalities would require them to hire and train staff to oversee maintenance

and ensure compliance, thus duplicating a responsibility of a collection vehicle

owner. The costs of this rule would therefore be higher than under the

recommended alternative.

Under this proposal, enforcement would be overly cumbersome and create

confusion. ARB inspectors would have to determine the municipality for which

each truck is working under contract and deliver notices of violation or tickets to

the responsible municipality. A truck working for one municipality, however,

could be redirected to work for another on a different day because of scheduling

needs.
60

In summary, the industry proposal lacks sufficient enforcement mechanisms,

misplaces operational compliance with the control measure, and is neither

effective nor efficient at achieving the goals of the Diesel Risk Reduction Plan.

This industry proposal would also be more costly than the staff proposal. Staff,

therefore, has not proposed placing the sole responsibility for compliance on a

municipality that contracts for service. Municipalities do, however, share

responsibility for compliance and ARB may enforce against either or both parties

when vehicles are found to be out of compliance.

B. Accelerated Implementation

Staff has also met several times with a group representing environmental

organizations concerned with air pollution. This group has proposed accelerating

the implementation schedule to achieve PM emission reductions sooner than in

the staff proposal. Two objectives have been presented to staff: first, to

accelerate the oldest vehicles to implement in advance of 2007, and second, to

accelerate implementation of the newest vehicles, those with MY 2003-2006

engines.

Staff has already accelerated one group of vehicles in response to this request

by moving MY 1988 through 1993 engines into the first implementation group.

Staff is continuing to analyze the potential costs and benefits of this option, but

our analysis to date does not show a great enough benefit from further

implementation acceleration to justify the greater expense of compressing the

compliance schedule

Group 2 (MY 1960 – 1987) engines are the most challenging to retrofit with a

DECS because they have higher PM emissions and tend to have colder engine

exhaust temperatures. Manufacturers of DECSs have also not moved to verify

technology for these engines. Staff therefore believes the majority of these

engines will have to be repowered. As the new engine standard of 0.01 g/bhp-hr

PM begins with the 2007 model year, staff proposes beginning implementation in

2007 to get the maximum PM emission reductions at the most reasonable cost.

An earlier start date for implementation would mean that the owner would be

required to purchase an engine certified to 0.1 g/bhp-hr and install a DECS to

comply. An owner may be able to install a Level 3 DECS, achieving close to

0.01 g/bhp-hr PM emissions, but if Level 3 is not indicated for that engine and

duty cycle combination an owner may instead have to use a Level 1 or Level 2

technology, thus achieving lower PM reductions in practice.

Group 3 (MY 2003-2006) engines, while seemingly easy to retrofit, actually suffer

from a similar issue. Manufacturers of DECS have thus far had difficulties in

verifying passive DPFs for these engines because of the use of exhaust gas

recirculation (EGR) to reduce NOx emissions as required. An accelerated

implementation schedule could, therefore, result in more of these vehicles using

Level1 or Level 2 technology, thus losing emission benefits staff anticipates
61

under its current schedule. An additional issue is that overlapping compliance

schedules with Groups 1 (MY 1988 – 2002) and 2 (MY 1960 – 1987) would

increase the year-by-year costs of compliance for owners and make the cost of

this rule more burdensome for vehicle owners.

Staff has not, therefore, incorporated the recommendations for accelerating the

implementation schedule presented by the environmentalist groups.

XI. SUMMARY AND STAFF RECOMMENDATION

Despite significant success in reducing overall pollution levels, air pollution

continues to be an important public health problem. Air monitoring shows over

90 percent of Californians breathe unhealthy levels of one or more air pollutants

during some part of the year. ARB has set standards for eight criteria pollutants,

such as ozone and PM. In addition to this standard, ARB identified diesel PM as

a TAC – a pollutant that even at low levels, may cause serious long-term health

effects, such as cancer. These toxics have no known safe levels, and some may

accumulate in the body from repeated exposures. ARB must continue its effort to

protect the health of Californians, particularly those most sensitive to the effects

of air pollution, such as children and the elderly, by reducing pollution from all

sources.

Therefore, ARB staff recommends the Board adopt new sections 2020, 2021.1

and 2021.2, title 13, chapter 1, article 4, CCR, in its entirety. The regulation is

set forth in the proposed regulation order in Appendix A.
62

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