State of California

AIR RESOURCES BOARD

Resolution 02-30

October 24, 2002

Agenda Item No.: 02-8-2

WHEREAS, sections 39600 and 39601 of the Health and Safety Code authorize the

Air Resources Board (the "Board") to adopt standards, rules and regulations and to

do such acts as may be necessary for the proper execution of the powers and duties

granted to and imposed upon the Board by law;

WHEREAS, in section 43000 of the Health and Safety Code, the Legislature has

declared that the emission of air pollutants from motor vehicles is the primary cause

of air pollution in many parts of the state and, in sections 39002 and 39003 of the

Health and Safety Code, has charged the Board with the responsibility of

systematically addressing the serious air pollution problem caused by motor

vehicles;

WHEREAS, sections 43013, 43101, and 43104 of the Health and Safety Code

authorize the Board to adopt motor vehicle emission standards, in-use performance

standards, and test procedures, which it finds to be necessary, cost-effective, and

technologically feasible;

WHEREAS, section 43018 of the Health and Safety Code directs the Board to

endeavor to achieve the maximum degree of emission reduction possible from motor

vehicle sources to accomplish the attainment of state ambient air quality standards

by the earliest practicable date;

WHEREAS, section 43806 of the Health and Safety Code directs the Board to adopt

emission standards and procedures applicable to new engines used in publicly

owned and privately owned public transit buses;

WHEREAS, the United States Environmental Protection Agency has promulgated

emission standards and programs to reduce emissions from urban transit buses,

and those standards and programs can be found in title 40 of the Code of Federal

Regulations, part 86;

WHEREAS, section 43701(b) of the Health and Safety Code requires the Board to

adopt regulations that require heavy-duty diesel vehicles to utilize emission control

equipment and alternative fuels to reduce emissions to the greatest extent feasible;
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WHEREAS, section 39667 of the Health and Safety Code directs the Board to

achieve the maximum possible reduction in public exposure to toxic air contaminants

by establishing emission standards for vehicular sources, including new and in-use

motor vehicles and fuels;

WHEREAS, on August 27, 1998, following extensive scientific review and public

hearings, and consistent with the conclusions of the Scientific Review Panel and the

Office of Environmental Health Hazard Assessment, the Board formally identified

particulate matter (PM) emissions from diesel-fueled engines as a toxic air

contaminant and on September 28, 2000, approved a plan to reduce risk from diesel

pollution by reducing harmful PM emissions from diesel engines;

WHEREAS, the Board, through the adoption of Resolution 98-49 on

September 24, 1998, called on state, local, and federal agencies to join together to

“clean the fleet,” supported immediate and continuing efforts to replace diesel-fueled

school and public urban transit buses with low-emission alternative-fuel buses,

including the provision of necessary infrastructure and technical training, and

directed the staff to distribute this resolution to multiple affected parties;

WHEREAS, on February 24, 2000, the Board adopted Resolution 00-2 to achieve

near-term and long-term emission reductions from urban transit buses through a

multifaceted fleet rule designed to reduce emissions of oxides of nitrogen (NOx) and

diesel PM by mandating a lower fleet average of NOx emissions; by requiring

engines to be retrofitted with devices to reduce diesel PM emissions by at least 85

percent; by requiring engine manufacturers to significantly reduce the allowable

emissions from certified bus engines; by requiring that transit agencies switch to low

sulfur (less than 15 parts per million) diesel fuel; and by requiring transit agencies to

purchase specified percentages of zero emission buses;

WHEREAS, the Board, through Resolution 00-2, directed the Executive Officer to

work with transit agencies during implementation of the regulations, including

provisions of the fleet rule, and to report to the Board regularly on transit agencies’

progress in implementing the regulations;

WHEREAS, on September 20, 2001, the Board adopted Resolution 01-31 directing

the Executive Officer to continue development of a test procedure for the evaluation

of hybrid electric bus emissions and to report back to the Board by late 2002 on

progress in this effort;

WHEREAS, on March 21, 2002, the Board found that no retrofit devices had been

certified for any bus engines older than model year 1994;

WHEREAS, on March 21, 2002, the Board adopted Resolution 02-16 directing the

Executive Officer to make the necessary regulatory changes to the diesel PM retrofit

implementation schedule to achieve as close to the same reductions in diesel PM as

feasible when compared to the implementation schedule in the current regulation,

but which would otherwise not be achieved because of technological limitations

unless changes were made to the regulation, and to bring a proposal for the Board’s

consideration to allow transit agencies sufficient time to make purchasing decisions;
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WHEREAS, the Board, through Resolution 02-16, directed the Executive Officer to

be sensitive to the difficulties faced by smaller, rural transit agencies in meeting the

requirements of the transit bus regulation;

WHEREAS, at the March 2002 meeting, the Board directed staff to analyze the

impact of and need for allowing transit agencies to switch from the diesel path to the

alternative fuel path;

WHEREAS, at the May 2002 meeting, the Board adopted the “Diesel Emission

Control Strategy Verification Procedure, Warranty and In-Use Compliance

Requirements for On-Road, Off-Road, and Stationary Diesel-Fueled Vehicles and

Equipment” requiring that any device installed on urban buses to meet the diesel PM

reduction requirement be verified under the procedures adopted therein;

WHEREAS, the California Environmental Quality Act and Board regulations require

that no project which may have significant adverse environmental impacts be

adopted as originally proposed if feasible alternatives or mitigation measures are

available to reduce or eliminate such impacts;

WHEREAS, the Board has considered the impact of this proposed regulatory action

on the economy of the state;

WHEREAS, the Board must find that no alternative considered would be more

effective, or equally effective and less costly, in achieving the regulatory objectives

sought than the proposed regulations;

WHEREAS, the ARB staff conducted public workshops on May 3, 2002,

May 7, 2002, and June 25, 2002, as well as public outreach meetings, including a

publicly-noticed conference call on August 22, 2002, in order to include the public

and affected stakeholders in the process for regulatory development;

WHEREAS, a staff report and draft regulatory language were published and made

available to the public for 45 days prior to this Board hearing;

WHEREAS, a public hearing and other administrative proceedings have been held

in accordance with the provisions of Chapter 3.5 (commencing with section 11340),

Part 1, Division 3, Title 2 of the Government Code;

WHEREAS, based on the information in the public record, including the staff report

and testimony provided at the hearing, the Board finds that:

1. The revised diesel PM reduction program is designed to ensure that every

diesel fleet will have its in-use PM emissions significantly reduced by 2007 or

2009, depending on fuel path.

2. Only transit agencies in the South Coast Air Quality Management District

(SCAQMD) indicated an interest in changing fuel paths, and allowing transit

agencies in the SCAQMD to change from the diesel path to the alternative

fuel path will have no negative impact on the benefits expected from the
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current regulation because transit agencies in the SCAQMD have been

purchasing alternative-fueled buses in accordance with District rules.

3. Removing the restriction prohibiting transit agencies on the diesel path from

purchasing alternative-fueled engines with NOx emissions in excess of 0.5

g/bhp-hr will encourage and facilitate alternative-fueled bus purchases by

transit agencies on either fuel path for use in an alternative fuel bus.

4. A new provision allowing transit agencies with 20 or fewer buses to request

an implementation delay based on financial hardship will provide a

mechanism in which the Executive Officer can hear and decide on the merits

of exceptional requests for an implementation delay.

5. Modifying the definition of “active fleet” and adding definitions for “emergency

contingency vehicle” and “spare bus” will help clarify the intent and facilitate

implementation of the transit bus regulation.

6. Heavy-duty pilot ignition engines operating on natural gas and using a small

quantity of diesel for ignition will be certified at or below California’s standards

for alternative fuel engines and are appropriate for purchase by transit

agencies.

7. Repealing the “California Certification Procedures for PM Retrofit Devices for

On-Road Heavy-Duty Vehicles” and replacing them with “Diesel Emission

Control Strategy Verification Procedure, Warranty and In-Use Compliance

Requirements for On-Road, Off-Road, and Stationary Diesel-Fueled Vehicles

and Equipment” will have no impact on transit agencies and will ensure that

all manufacturers follow the same procedures.

8. The interim certification procedures for hybrid-electric vehicles in the urban

bus and heavy-duty vehicle classes are designed to provide flexibility for

manufacturers, reliability for transit agencies, and enforceability for the Board;

allow up to two parties to apply for an Executive Order identifying the

emission standard of the engine and hybrid-electric drive system for model

years 2004 through 2006, and require one party certification for 2007 and

later model years; and will facilitate the introduction of this promising new

technology into California as well as provide staff with a period of continued

evaluation of hybrid-electric drive system technology.

9. No alternative considered would be more effective, or equally effective and

less costly, in achieving the regulatory objectives sought than the proposed

amendments.

WHEREAS, pursuant to the requirements of the California Environmental Quality Act

and the Board’s regulations, the Board further finds that:

1. The adoption of the amendments will achieve 180 lbs per day of diesel PM

emission reductions in 2010, which represents a slight increase (12 lbs/day)

in the benefit expected under the original regulation in that timeframe; in
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2005, however, the proposal will result in diesel PM emissions 15 lbs/day

higher than what was expected with the original regulation;

2. The increase in emissions for 2005 is extremely small and time-limited, but

could nevertheless constitute an adverse environmental impact;

3. There are no feasible mitigation measures or alternatives that would reduce

the potential adverse environmental impacts, while at the same time ensuring

that the long-term benefits of the program would be achieved;

4. The proposed amendments are necessary to address the lack of available

technology in the timeframe anticipated for the original regulation, as well as

the need to provide transit agencies additional time necessary to comply with

the amendments;

5. The considerations identified above override any adverse environmental

impacts that may occur from adoption of the proposal.

NOW, THEREFORE, BE IT RESOLVED, that the Board approves the amendments

to sections 1956.1, 1956.2, 1956.4, 1956.8, and 2112, title 13, California Code of

Regulations, and approves the incorporated “California Interim Certification

Procedures for 2004 and Subsequent Model Hybrid-Electric Vehicles, in the Urban

Bus and Heavy-Duty Vehicle Classes”, as set forth in Attachment A hereto.

BE IT FURTHER RESOLVED, that the Board directs the Executive Officer to adopt

the amendments, with the modifications approved by the Board as set forth in

Attachment A hereto and such other conforming modifications as may be

appropriate, after making the modified regulatory language available for public

comment for a period of 15 days; provided that the Executive Officer shall consider

such written comments as may be submitted during this period, shall make further

modifications as may be appropriate in light of the comments received or as

necessary to ensure consistency with the modifications approved by the Board, and

shall bring any proposed changes to the Board for consideration if he believes this is

warranted.

I hereby certify that the above is a true and

correct copy of Resolution 02-30, as

adopted by the Air Resources Board.

______________________________

Stacey Dorais, Clerk of the Board
Resolution 02-30

October 24, 2002

Identification of Attachment to the Resolution

Attachment A: Proposed Amendments to the Public Transit Bus Fleet Rule and

Interim Certification Procedures for Hybrid-Electric Urban Transit

Buses, as set forth in Appendix A to the Staff Report (released

September 6, 2002).