State of California

AIR RESOURCES BOARD

Resolution 10-26

June 24, 2010

Agenda Item No.: 10-6-2

WHEREAS, sections 39600 and 39601 of the Health and Safety Code authorize the Air Resources Board (ARB or Board) to adopt standar ds, rules, and regulations, and to do such acts as may be necessary for the proper exe cution of the powers and duties granted to, and imposed upon, the Board by law;

WHEREAS, Health and Safety Code section 43013(b) au thorizes the Board to adopt standards and regulations for off-road and nonvehic ular engine categories, including marine vessels such as commercial harbor craft, to the extent permitted by federal law;

WHEREAS, sections 43018(a) and (d)(3) of the Health and Safety Code direct the Board to endeavor to achieve the maximum degree of emission reduction possible from vehicular and other mobile sources, including marin e vessels, in order to accomplish the attainment of the state ambient air quality standar ds at the earliest practicable date;

WHEREAS, in section 39650 of the Health and Safety Code, the Legislature finds and declares that it is the public policy of the state that emissions of toxic air contaminants should be controlled to levels which prevent harm t o the public health;

WHEREAS, on August 27, 1998, the Board identified p articulate matter from diesel-fueled engines (diesel exhaust PM) as a toxi c air contaminant pursuant to article 3 (commencing with section 39660), chapter 3.5, par t 2, division 26 of the Health and Safety Code;

WHEREAS, ARB staff, in consultation with the Office of Environmental Health Hazard Assessment, has concluded that the particulate matt er emissions from diesel engines on commercial harbor craft using diesel fuel consti tute diesel exhaust PM;

WHEREAS, in identifying diesel exhaust PM as a toxi c air contaminant, the Board

determined that there is not sufficient scientific evidence to support identification of a

threshold level for diesel exhaust PM below which n o significant adverse health effects are anticipated; this is codified in title 17, Cali fornia Code of Regulations (CCR), section
93000;

WHEREAS, pursuant to section 39669.5(a) of the Heal th and Safety Code, the Office of

Environmental Health Hazard Assessment listed diese l exhaust PM as possibly causing infants and children to be especially susceptible t o illness;Resolution 10-26 -2-

WHEREAS, pursuant to section 39665 of the Health an d Safety Code, ARB staff prepared a comprehensive risk reduction plan to sig nificantly reduce diesel exhaust PM emissions from diesel-fueled engines and vehicles, including marine vessels, which the Board approved on September 28, 2000;

WHEREAS, the “Staff Report: Initial Statement of R easons for the Proposed Rulemaking – Regulations to Reduce Emissions from D iesel Engines on Commercial Harbor Craft Operated Within California Waters and 24 Nautical Miles of the California Baseline” (Staff Report) and “Technical Support Doc ument: Technical Support for the Proposed Rulemaking – Regulations to Reduce Emissio ns from Diesel Engines on Commercial Harbor Craft Operated Within California Waters and 24 Nautical Miles of the California Baseline” (Technical Support Documen t), both released on September 7, 2007 (collectively referred to hereina fter as “September 2007 Staff Report”), along with the report “Risk Reduction Pla n to Reduce Particulate Matter Emissions from Diesel-Fueled Engines and Vehicles,” adopted by the Board on September 28, 2000, and the “Staff Report: Initial Statement of Reasons for the Proposed Rulemaking – Amendments to the Regulations to Reduce Emissions from Diesel Engines on Commercial Harbor Craft Operated Within California Waters and

24 Nautical Miles of the California Baseline” relea sed on May 5, 2010 (“May 2010 Staff Report”), constitute the reports required under Hea lth and Safety Code section 39665;

WHEREAS, sections 39658, 39665, and 39666 of the He alth and Safety Code

authorize the Board to establish airborne toxic con trol measures (ATCM) for substances

identified as toxic air contaminants in accordance with specified criteria;

WHEREAS, for toxic air contaminants that the Board has not specified a threshold exposure level, section 39666 of the Health and Saf ety Code requires the development of ATCMs designed to reduce emissions of toxic air contaminants from nonvehicular sources to the lowest level achievable through the application of best available control technology (BACT) or a more effective control metho d, considering factors specified in section 39665, unless the Board determines, based o n an assessment of risk, that an alternative level of emissions reduction is adequat e or necessary to prevent an endangerment of public health;

WHEREAS, the Global Warming Solutions Act of 2006 ( AB 32; Stats, 2006, ch. 488) directs ARB to adopt regulations and other requirem ents to reduce statewide greenhouse gas emissions to 1990 levels by 2020;

WHEREAS, in January 2005, a Goods Movement Cabinet Workgroup, created by Governor Schwarzenegger and led by the California E nvironmental Protection Agency and the Business, Transportation and Housing Agency , established a policy for goods movement and ports to improve and expand California ’s goods movement industry and infrastructure while improving air quality and prot ecting public health;

WHEREAS, the Goods Movement Cabinet Workgroup, in c ollaboration with the logistics industry, local and regional governments, neighbori ng communities, business, labor, environmental groups, and other interested stakehol ders created a two-phased GoodsResolution 10-26 -3-

Movement Action Plan, which outlines a comprehensiv e strategy to address the

economic and environmental issues associated with m oving goods via the State’s highways, railways, and ports;

WHEREAS, in 2006, the Board adopted the Emission Re duction Plan for Ports and Goods Movement, the final phase of which, completed in 2007, includes a framework for action, which identifies projects needed to red uce emissions from goods movementrelated sources, including those from commercial ha rbor craft engines;

WHEREAS, commercial harbor craft vessels are nonveh icular sources of substantial amounts of diesel exhaust PM, criteria pollutants ( e.g., nitrogen dioxide), and precursors of criteria pollutants (e.g., oxides of nitrogen (N O

x ));

WHEREAS, ARB staff has determined that the current United States Environmental Protection Agency (U.S. EPA) emission standards do not sufficiently reduce emissions of diesel exhaust PM and other criteria pollutants and precursors from in-use commercial harbor craft vessels;

WHEREAS, ARB adopted a regulation for commercial ha rbor craft diesel engines (hereinafter “Commercial Harborcraft (CHC) regulati on”), set forth at title 13, CCR, section 2299.5 and title 17, CCR section 93118.5, t hat became effective on November
19, 2008;

WHEREAS, ARB staff has proposed amendments to the C HC regulation, as set forth in Appendix A of the May 2010 Staff Report and Attachm ent A hereto; these proposed amendments were developed through the sharing of in formation and discussions of concepts and draft versions that were made availabl e to the public for review and comment at three public workshops and outreach meet ings and multiple teleconferences with stakeholders, owner/operators of crew and supply, barge, and dredge vessels, air pollution control and air quali ty management districts (districts), and other interested parties that were held between Jul y 2007 and May 2010;

WHEREAS, the CHC regulation relies, in part, on U.S . EPA’s Marine Engine Tier 2 standards, as set forth in “Control of Emissions of Air Pollution From New Marine Compression-Ignition Engines at or above 37kW” (40 CFR parts 89, 92, and 94 (December 29, 1999));

WHEREAS, the CHC regulation relies, in part, on U.S . EPA’s Marine Engine Tier 3 and Tier 4 standards, as set forth in “Control of Emiss ions of Air Pollution from Locomotive Engines and Marine Compression-Ignition Engines Les s Than 30 Liters Per Cylinder” (72 Federal Register 15937 et seq. (April 3, 2007)) ;

WHEREAS, the September 2007 and May 2010 Staff Repo rts identify and explain the need and appropriate degree of regulation for diese l exhaust PM and other pollutants from commercial harbor craft;Resolution 10-26 -4-

WHEREAS, the September 2007 Staff Report identified Regulated California Waters as a region of water, including all California interna l waters, estuarine waters, ports, and coastal waters generally within 24 nautical miles o f California’s coast, which is a subset of the California Coastal Waters (title 17, CCR, se ction 70500(b)(1)). The Board has previously determined, through extensive studies of meteorological, wind, and atmospheric conditions, that emissions of air pollu tants within the California Coastal Waters are likely to be transported to coastal comm unities and have adverse impacts on human health and welfare and the environment;

WHEREAS, the September 2007 and May 2010 Staff Repo rts discussed the need for and feasibility of regulating emissions from diesel engines on commercial harbor craft operating within Regulated California Waters;

WHEREAS, the September 2007 and May 2010 Staff Repo rts further discussed, to the extent data could reasonably be made available, the factors specified in Health and Safety Code sections 39665(b), 43013, and 43018, in cluding, but not limited to, the estimates of emissions; exposure; potential cancer risk associated with the operation of commercial harbor craft engines in Regulated Califo rnia Waters; feasible control options; potential environmental impacts; and the n ecessity, cost-effectiveness, and technological feasibility of the proposed regulatio n;

WHEREAS, the September 2007 Staff Report further di scussed risk evaluations ARB staff performed of exposure to diesel exhaust PM em issions from diesel engines operated on commercial harbor craft, using U.S. EPA -approved and ARBrecommended air dispersion models, and these evalua tions indicate potential cancer risks for off-site receptor locations near Californ ia’s major ports up to levels exceeding 200 chances in a million;

WHEREAS, in addition to discussing the potential ca ncer risks due to exposure to diesel exhaust PM emission, the September 2007 Staf f Report discussed non-cancer risk evaluations ARB staff performed of exposure to diesel exhaust PM emissions from diesel engines operated on commercial harbor craft, and these evaluations indicated that exposure to these emissions can be associated with about 90 premature deaths per year in addition to numerous other non-cancer h ealth impacts;

WHEREAS, the May 2010 Staff Report further determin es that the emissions from diesel engines operated on crew and supply, barge, and dredge vessels contribute to levels of ozone and particulate matter that exceed federal and State ambient air quality
standards;

WHEREAS, crew and supply vessels are currently exem pted from the CHC regulation’s in-use engine requirements because information obta ined from the 2004 Statewide Commercial Harbor Craft Survey indicated these vess els had limited hours of operation and emissions;

WHEREAS, information acquired since 2007 now indica tes that the emissions from crew and supply vessel engines are similar in magni tude to the emissions from otherResolution 10-26 -5-

CHC vessel engines that are subject to the CHC regu lation’s in-use emissions requirements;

WHEREAS, crew and supply vessels typically operate less than 3 nautical miles from shore, so most of their emissions impact communitie s located near ports;

WHEREAS, approximately 400 engines currently operat e on barge and dredge vessels in California, and the auxiliary engines on barge a nd dredge vessels are primarily off-road (nonroad) engines;

WHEREAS, barge and dredge vessels typically operate in harbors and generally close to shorelines, so most of their emissions impact co mmunities located near ports;

WHEREAS, the proposed amendments would establish in -use emission limits and associated compliance schedules for the diesel-fuel ed engines on crew and supply, barge, and dredge vessels that are similar to the e xisting emission limits and compliance schedules applicable to excursion vessel s, ferries, tugboats, and towboats in the CHC regulation;

WHEREAS, the CHC regulation currently exempts engin es on barge and dredge vessels that were registered with ARB’s Portable Eq uipment Registration Program (PERP) before January 1, 2009, or that were registe red and permitted under local air district regulations before January 1, 2009;

WHEREAS, engines on barge and dredge vessels that w ere not registered with PERP before January 1, 2009, or that were not registered and permitted under local air district regulations before January 1, 2009 are currently su bject to the CHC regulation, but are not subject to the CHC regulation’s in-use emission s requirements;

WHEREAS, staff proposed amendments to the PERP regu lation in January 2010 that would subject auxiliary engines on CHC vessels that are registered in PERP to the CHC regulation;

WHEREAS, ARB has promulgated new off-road diesel en gine standards that are harmonized with and essentially identical to U.S. E PA Tier 2 through Tier 4 nonroad diesel emission standards as set forth in Title 40, Code of Federal Regulations Part 89.112(d), as it existed on April 27, 2010, and Par t 1039.101, as it existed on April 27, 2010;

WHEREAS, the proposed amendments would provide CHC vessel owners and operators more flexibility by allowing them to use currently available Tier 2 or higher

ARB or U.S. EPA certified off-road or nonroad diese l engines to comply with the in-use requirements applicable to CHC vessel auxiliary eng ines;

WHEREAS, the proposed amendments would delete the t erm “multipurpose harbor craft” and would clarify the low use exemption of t he CHC regulation to assist vessel owners or operators in understanding and complying with the CHC regulation;Resolution 10-26 -6-

WHEREAS, the proposed amendments would provide vess el operators greater compliance flexibility by allowing them to operate their vessels using U.S. EPA on-road or nonroad diesel fuel if they cannot obtain CARB d iesel fuel prior to operating in Regulated California Waters;

WHEREAS, the proposed amendments would provide vess el owners/operators an exemption in specific cases, allowing them to insta ll a non-compliant engine in a vessel if there are no suitable engine replacements availa ble or if a complaint engine does not synchronize with the vessel’s other existing engine s;

WHEREAS, the proposed amendments would allow an eng ine that does not meet applicable Tier 2 or Tier 3 requirements to be used on a temporary basis provided that the engine being replaced is in the same fleet and the original compliance date of the older engine remains in effect;

WHEREAS, the proposed amendments would clarify the existing requirements that owners/operators of new ferries having the capacity to transport 75 or more passengers are required to equip diesel propulsion engines mee ting either Tier 2 or Tier 3 marine standards with Best Available Control Technology (B ACT);

WHEREAS, the proposed amendments would expand the a vailability of current compliance extensions to owners in situations where owners have multiple vessels that are subject to compliance dates of 2011 or 2012 for crew and supply, barge, and dredge vessels;

WHEREAS, the May 2010 Staff Report further determin es that while some actions required by the amended regulation may result in sl ightly increased carbon dioxide emissions for some applications, a slight decrease in greenhouse gas emissions associated with newer, more fuel efficient engines required by the amended regulation will offset this effect, thereby resulting in an ov erall negligible effect on global warming;

WHEREAS, in accordance with Health and Safety Code section 39665(c), the May 2010 Staff Report and relevant comments receive d during public consultation with districts, affected sources, and the public were ma de available for public review and comment at least 45 days prior to the public hearin g to consider the proposed amendments;

WHEREAS, the proposed amendments, with the modifica tions described in Attachment B, would result in immediate emission re ductions of diesel exhaust PM and

NO

x after the specified compliance deadlines by requir ing that diesel engines on crew and supply, barge, and dredge vessels within Regula ted California Waters meet emission limitations that can be achieved through t he replacement of existing engines with new clean engines, by demonstrating that exist ing engines meet the emission limitations, or by implementing equally effective e mission control strategies;Resolution 10-26 -7-

WHEREAS, the Board has considered the impact of the proposed regulation on the economy of the state and the potential for adverse economic impacts on California business enterprises and individuals;

WHEREAS, the California Environmental Quality Act ( CEQA), section 21080.5 of the Public Resources Code and Board regulations at titl e 17, CCR section 60006 require that no project that may have significant adverse e nvironmental impacts be adopted as originally proposed if feasible alternatives or mit igation measures are available to reduce or eliminate such impacts;

WHEREAS, a public hearing and other administrative proceedings have been held in accordance with the provisions of chapter 3.5 (comm encing with section 11340), part 1, division 3, title 2 of the Government Code;

WHEREAS, pursuant to the requirements of CEQA and t he Board’s regulations, the

Board finds that:

1. The Regulated California Waters feature meteorol ogical, wind, and atmospheric conditions peculiar to the local waters of Californ ia, and such conditions make it likely that emissions of diesel exhaust PM and NO

x occurring within these waters are transported to coastal communities and adversely af fect human health and welfare and the environment in such communities, thereby ca lling for special precautions to reduce these emissions;

2. The emissions from diesel engines used on crew a nd supply, barge, and dredge vessels also contribute to regional air quality pro blems and to potential risk of cancer and noncancer health effects for residents living i n communities near California’s major ports as well as further inland;

3. Information acquired since 2007 indicates that the diesel PM emissions from crew and supply vessel engines are approximately 75 perc ent higher than estimated in the September 2007 Staff Report, and NO

x emissions are approximately 60 percent higher than estimated in the September 2007 Staff R eport;

4. Emissions from the engines on crew and supply, b arge, and dredge vessels represent a significant portion of the emissions fr om CHC vessels in Santa Barbara and Ventura County air pollution control districts;

5. The combined emissions from crew and supply, bar ge, and dredge vessels are estimated at 66 tons per year (tpy) of diesel PM an d 1430 tpy of NO

x ;

6. The proposed amendments are projected to reduce statewide emissions of diesel PM from crew and supply, barge, and dredge vessels by about 275 tons between
2011 to 2025;Resolution 10-26 -8-

7. The proposed amendments are projected to reduce statewide emissions of NO

x from crew and supply, barge, and dredge vessels by about 3,475 tons, between
2011 to 2025;

8. The proposed amendments are projected to reduce 95 tons of PM and 600 tons of

NO

x from crew and supply vessels over the period 2011 through 2025 in Santa Barbara and Ventura County districts; in addition t o the emissions resulting from the CHC regulation and are of greater significance to t hese two districts;

9. The emissions reductions associated with the pro posed amendments would result in lower ambient PM levels and reductions in the publi c’s exposure to diesel PM and

NO

x , which would result in corresponding reductions of potential cancer risk and premature deaths;

10. The ARB and U.S. EPA Tier 2, Tier 3, interim Ti er 4 and final Tier 4 off-road and nonroad compression-ignition engine emission standa rds, compliance requirements, and test procedures are necessary, appropriate, and technologically feasible to carry out the purposes of the state and federal clean air laws;

11. The CHC regulation’s current exemption from the in-use engine emission requirements for auxiliary engines on barge and dre dge vessels that are either registered with PERP or that were registered and pe rmitted under local air district regulations before January 1, 2009 has led to compl iance and enforcement issues because such engines can currently be subject to ei ther the CHC regulation or the Portable Engine ATCM;

12. The ARB and U.S. EPA Tier 2, Tier 3, interim Ti er 4 and final Tier 4 off-road and nonroad compression-ignition engine emission standa rds, compliance requirements, and test procedures are, in the aggregate, at least as protective of public health and welfare as their corresponding U.S. EPA Tier 2, Tie r 3, and Tier 4 marine engine emission standards, compliance requirements, and te st procedures;

13. The proposed amendments will provide needed con sistency by subjecting auxiliary engines on CHC vessels, and auxiliary engines on ba rge and dredge vessels, to the requirements of the CHC regulation, regardless if t hey are registered in PERP or registered and permitted under local air district r egulations;

14. The amended regulation will likely have an over all negligible effect on global warming due to usage of newer, more fuel efficient engines;

15. The amended regulation will be consistent with ARB’s environmental justice policy by reducing the health risks from diesel exhaust PM in all communities including those near major California ports as well as furthe r inland, with low-income and minority populations regardless of location;

16. The amended regulation will not have a signific ant adverse impact on the environment, but will instead result in environment al benefits; andResolution 10-26 -9-

17. The amended regulation will conform to the requ irements of the Emission Reduction

Plan for Ports and Goods Movement.

WHEREAS, the Board further finds, based on its inde pendent judgment and analysis of the entire record before it, including the May 2010 Staff Report, written comments and public testimony it has received, that:

1. In accordance with Health and Safety Code sectio n 43013(b), the in-use emission limits and other requirements of the amended regula tion are necessary, costeffective, and technologically feasible for diesel engines on crew and supply, barge, and dredge vessels within the time provided for com pliance;

2. The compliance schedules contained within the am ended regulation that are applicable to crew and supply, barge, and dredge ve ssels are necessary, costeffective, and technologically feasible;

3. The reduction of NO

x emissions resulting from the amended regulation wo uld also reduce the formation of secondarily-formed PM and o zone in the atmosphere;

4. The added costs of the amended regulation have b een analyzed as required by California law, and the analysis of these impacts, as set forth in the May 2010 Staff Report, indicates that a total adde d cost incurred for all companies operating crew and supply, barge, and dredge vessel s will be about $15 million over the life of the amended regulation between 2011 and 2022;

5. The staff’s economic impact analysis for the pro posed amendments shows that

affected businesses will be able to absorb the cost s of the proposed amended regulation with no significant statewide adverse im pacts on their profitability, based on the projected reduction in return on owner’s equ ity (ROE), which has been estimated to be 0.95 percent for a typical crew and supply, barge, or dredge vessel operating company.

6. The cost-effectiveness of the amended regulation is estimated at approximately $35 per pound of diesel exhaust PM reduced if all t he costs of the regulation were attributed to diesel PM reductions; this is within the range of other measures recently adopted by the Board;

7. No alternatives considered or that have otherwis e been identified and brought to the attention of ARB would be more effective at carryin g out the purpose for which the amended regulation is proposed, or be as effective, and less burdensome, to the affected businesses than the amended regulation;

8. There are no feasible mitigation measures or alt ernatives that would further reduce any potential adverse environmental impacts, while at the same time ensuring that the long-term benefits of the program would be achi eved;Resolution 10-26 -10-

9. The reporting requirements applicable to busines ses in the amended regulation are necessary for the health, safety, and welfare of th e people of the State;

10. The benefits of the amended regulation to publi c health and welfare and the environment outweigh the costs of compliance, imple mentation, and enforcement;

and

11. The amended regulation approved herein poses a minimal risk of innocent noncompliance and does not affect crew and supply, barge, and dredge vessel operations outside of Regulated California Waters.

WHEREAS, the Board further finds, in accordance wit h Health and Safety Code section 39650(e), that while absolute and undispute d scientific evidence may not be

available to determine the exact risk from diesel e xhaust PM from diesel engines on crew and supply, barge, and dredge vessels operatin g within the Regulated California Waters, it is necessary to take action to protect p ublic health and that the maximum feasible emission reductions permitted by law shoul d be obtained;

WHEREAS, section 209(e)(2) of the federal Clean Air Act (CAA) requires that California seek authorization from U.S. EPA prior to enforcing emission standards or other requirements relating to the control of emissions f rom new and in-use nonroad engines (of which diesel marine engines are a subpart) not otherwise preempted by section 209 (e)(1); and

NOW, THEREFORE, BE IT RESOLVED that the Board hereb y approves for adoption the proposed amendments to title 13, CCR section 22 99.5 to title 17, CCR section 93118.5 as set forth in Attachment A hereto, with t he modifications shown in Attachment

B hereto.

BE IT FURTHER RESOLVED that the Board directs the E xecutive Officer to adopt the approved regulation with such additional conforming modifications as may be appropriate, after making the modified regulatory l anguage and any additional documents and information available for public comm ent for a period of at least 15 days, provided that the Executive Officer shall consider any written comments regarding the modifications and any additional docu ments and information as may be submitted during this period, shall make further mo difications as may be appropriate in light of the comments received or as necessary to e nsure consistency with the modifications approved by the Board, and shall brin g any proposed changes to the

Board for further consideration if the Executive Of ficer determines that this is warranted.

BE IT FURTHER RESOLVED that the Board directs the E xecutive Officer to periodically review the test methods (test methods) and the Cali fornia baseline (baseline) as shown in nautical charts published by the National Oceani c and Atmospheric Administration (NOAA charts) to determine if modifications to the test methods or definition of baseline incorporated by reference in the approved regulatio n are warranted.Resolution 10-26 -11-

BE IT FURTHER RESOLVED that, pursuant to sections 3 9515, 39516, 39600, and 39601 of the Health and Safety Code, if modificatio ns to the test methods or definition of baseline are warranted, the Board expressly delegat es to the Executive Officer the authority to: (a) adopt regulatory amendments to th e test methods, set forth in title 13, CCR, section 2299.5(j) and title 17, CCR, section 9 3118.5(j) and to the definition of baseline, set forth in title 13, CCR, section 2299. 5(d)(10), and title 17, CCR, section 93118.5(d)(10); (b) conduct public hearings; and (c ) take other appropriate actions to

make such amendments.

BE IT FURTHER RESOLVED that the Board directs the E xecutive Officer to conduct outreach efforts as soon as possible with the affec ted industry to ensure that vessel operators are aware of the requirements of the regu lation.

BE IT FURTHER RESOLVED that the Board directs the s taff to work with affected local air districts and dredge operators to explore oppor tunities to achieve greater consistency between air districts when offsets are required under district authorization for dredge operation;

BE IT FURTHER RESOLVED that the Board directs the s taff to monitor the implementation of the regulation and to propose ame ndments for the Board’s consideration when warranted to resolve any impleme ntation issues that may arise.

BE IT FURTHER RESOLVED that the Board hereby determ ines, in accordance with section 209(e)(2) of the CAA, that to the extent th e amended regulation affects nonroad engines as defined in CAA section 216(10) and (11), the emission standards and other requirements related to the control of emissions in the amended regulation are, in the aggregate, at least as protective of public health and welfare as applicable federal standards; California needs its nonroad emission st andards to meet compelling and extraordinary conditions; and the standards and acc ompanying enforcement procedures approved herein are consistent with CAA section 209

.

I hereby certify that the above is a true and correct copy of Resolution 10-26, as adopted by the Air Resources Board.

/s/

_____________________________________ Lori Andreoni, Clerk of the BoardResolution 10-26

June 24, 2010

Identification of Attachment to the Resolution

Attachment A: The Proposed Regulation Order for Die sel Engines on

Commercial Harbor Craft Operated within California Waters and 24 Nautical Miles of the California Baseline, a s set forth in Appendix A to the Staff Report (released May 201 0).

Attachment B: Staff's Suggested Modifications to t he Original Proposal,

presented at the June 24, 2010 Board hearing.ATTACHMENT B

PUBLIC MEETING TO CONSIDER AMENDMENTS TO THE REGULA TIONS TO

REDUCE EMISSIONS FROM DIESEL ENGINES ON COMMERCIAL HARBOR

CRAFT OPERATED WITHIN CALIFORNIA WATERS AND 24 NAUT ICAL MILES OF

THE CALIFORNIA BASELINE

Staff’s Suggested Modifications to the Original Pro posal

TO BE PRESENTED AT THE JUNE 24, 2010 HEARING

OF THE AIR RESOURCES BOARD

Shown below is the staff’s suggested modification t o the originally proposed amendments to the regulatory text set forth in Atta chment A to Resolution 10-26. Only those portions containing the suggested modificatio ns are included. All proposed modifications will be made available to the public for a fifteen-day comment period prior to final adoption.

Use of Certified Off-Road (Nonroad) Engines to Comp ly with In-use Standards for Propulsion Engines

Staff is proposing to modify the proposed regulator y language to allow U.S. EPA/ARB certified offroad (nonroad) engines to be used to c omply with the in-use emission standards for propulsion engines. The proposed reg ulation allows for certified offroad engines to be used to comply with the in-use emissi on standards for auxiliary engines. This proposed change would make the requirements fo r propulsion and auxiliary engines the same.