### SOUTH COASTAIR QUALITY MANAGEMENT DISTRICT

Draft Staff Report Proposed Amended Rule 2449 - Control ofOxides of Nitrogen Emissions from Off-Road Diesel Vehicles

May 2014

Deputy Executive Officer Planning, Rule Development, and Area Sources Elaine Chang, DrPH Assistant Deputy Executive Officer Mobile Source Division Science and Technology Advancement Henry Hogo Planning and Rules Manager Mobile Source Division Science and Technology Advancement Randall Pasek, Ph.D.

AUTHORS: Mobile Source Division. Science and Technology Advancement Adewale Oshinuga
- Program Supervisor Richard Carlson -Air Quality Specialist
REVIEWED BY: General Counsel Barbara Baird -Chief Deputy CounselSOUTHCOASTAIRQUALITYMANAGEMENT DISTRICT GOVERNINGBOARD Chairman:
Vice Chairman:

MEMBERS: WILLIAM A. BURKE, Ed.D. Speakerofthe Assembly Appointee DENNIS YATES Mayor, City ofChino Cities Representative, San Bernardino County

MICHAEL D. ANTONOVICH Supervisor, Fifth District Los Angeles County Representative BEN BENOIT MayorPro Tern, City ofWildomar Cities Representative, Riverside County JOHN J. BENOIT Supervisor, Fourth District Riverside County JOEBUSCAINO Councilmember, 15th District City ofLos Angeles MICHAEL A. CACCIOTTI Councilmember, City ofSouth Pasadena Cities Representative, LosAngeles County, Eastern Region JOSIE GONZALES Supervisor, Fifth District San Bernardino County Representative JOSEPH K. LYOU, Ph.D. Governor's Appointee JUDITH MITCHELL Mayor, City ofRolling Hills Estates Cities Representative, Los Angeles County, Western Region SHAWNNELSON Supervisor, Fourth District Orange County Representative DR. CLARKE. PARKER, SR. Senate Rules Committee Appointee MIGUEL PULIDO Mayor, City ofSantaAna Cities Representative, Orange County EXECUTIVE OFFICER: BARRY R. WALLERSTEIN, D.Env.Draft StaffReport ProposedAmended Rule 2449



### TABLE OFCONTENTS EXECUTIVE SUMMARY ...............................................................................................•.... 1 INTRODUCTION................................................................................................................... 1 SUMMARY OFPROPOSEDAMENDED RULE 2449

..................................................... 1 CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA)....................................... 2 SOCIOECONOMICASSESSMENT................................................................................... 2 DRAFTFINDINGS REQUIRED BY THE CALIFORNIAHEALTHAND SAFETY CODE SECTION40727

......................................................................................................... 2 Requirements to Make Findings.............................................................................................. 2 Necessity.................................................................................................................................. 2 Authority.................................................................................................................................. 2 Clarity...................................................................................................................................... 3 Consistency.............................................................................................................................. 3 Reference

.... . . . . .... . . ..... . . . . . . . . . ........ . . .... . . . . . . ..... ... ...... ....... . . . . . . . . . ...... . . . . . . . . ... ... . . . . . . . .... . . . . . . ..... . . ....... 3

SCAQMD SR2449- i April2014Draft StaffReport Proposed Amended Rule 2449


### EXECUTIVE SUMMARY The South Coast Air Quality Management District (SCAQMD or District) is proposing an administrative amendment to Rule 2449

- Control of Oxides ofNitrogen Emissions from Off-Road Diesel Vehicles, to revise the reference from Section 2449.3 to Section 2449.2, Title 13 ofthe California Code ofRegulation. As the provisions referred to in the proposed amendment are already in effect, they represent no change to existing requirements on affected fleets. 

### INTRODUCTION Off-road diesel vehicles collectively represent one of the largest sources of NOx and significantly contributed to PM2
.5 and ozone air quality in the South CoastAir Basin. In July 2007, CARB adopted the "In-Use Off-road Diesel Vehicle" regulation to reduce these emissions statewide by requiring fleets to meet increasingly stringent PM and NOx fleet average targets or annual turnover requirements. As part of the adoption, CARB added provisions to the State Regulation to include the Surplus Off-Road Opt-In for NOx (SOON) provisions contained in Section 2449.3, Title 13 of the California Code of Regulations (CCR), which allow air district to opt-in to the SOON program to achieve additional NOx reductions from off-road diesel vehicles. Section 2449.3 was finalized by CARB as part of the State Regulation (Title 13, CCR, Section 2449 

### et. seq.) and submitted to the California Office ofAdministrative Law (OAL) for final approval on April4, 2008. OAL approved the rulemaking and filed it with the Secretary ofState on May 16, 2008. The regulation became effective on June 15, 2008. The SOON provisions apply to affected fleets of off-road diesel vehicles as described in Section 2449.3(b). Once an air district has opted-in to the program, the SOON provisions require the affected fleets to submit an application for funding upon the District's issuance of a solicitation for applications for funding. On May 2, 2008, the Board opted-in to the SOON program and adopted Rule 2449 by referencing the SOON provisions of the CARB Regulation (Title 13, CCR, Section 2449.3). Rule 2449 was submitted to CARB on May 23, 2008 for approval. CARB approved Rule 2449 on July 2, 2008 and forwarded Rule 2449 on to U.S. EPA as a revision to the State Implementation Plan. In December 2011, prior to U.S. EPA review of Rule 2449, CARB amended the "In-Use Off-Road Diesel Vehicle" Regulation and removed Section 2449.2, Title 13 ofthe CCR, and renumbered the SOON Provision Section 2449.3 to Section 2449.2. CARB submitted the amended regulation on March 1, 2012 to U.S. EPA for authorization to implement the Regulation under hould Section 209(e) ofthe Clean Air Act. The U.S. EPA issued a "Notice of Decision" on September 30, 2013 granting CARB's request for authorization of the Regulation. (78FR58090 

### et. seq.). As part of their review ofthe approvability of Rule 2449, U.S. EPA indicated that Rule 2449 should be amended to reference the appropriate section ofthe State Regulation. 

### SUMMARY OF PROPOSED AMENDED RULE 2449 Proposed Amended Rule (PAR) 2449 would revise the reference to the SOON provisions provided in the In-Use Off-Road Diesel Vehicle Regulation (Title 13, CCR, 2449 

### et. seq.)
SCAQMD SR2449 -1 May 2014Draft StaffReport Proposed Amended Rule 2449
from Section 2449.3 to Section 2449.2. PAR 2449 is provided as Attachment A to this Report. 

### CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The SCAQMD has reviewed the proposed project pursuant to the CEQA Guidelines §15002 (k)(l), the first step of a three-step process for deciding which document to prepare for a project subjectto CEQA. Staffis proposing an administrative amendmentto SCAQMD Rule 2449 to revise the reference from Section 2449.3 to Section 2449.2 of Title 13 of the California Code ofRegulation. Because the SCAQMD exercises no discretion with regard to the proposed project, it is considered to be ministerially exempt. Therefore, the SCAQMD has determined the proposed amendments are statutorily exempt from CEQA pursuant to CEQA Guidelines §15268- Ministerial Projects. As a result, no significant adverse impacts on the environment are expected from the proposed project. Since it can be seen with certainty that the proposed project has no potential to adversely impact air quality or any other environmental area, it is exempt from CEQA pursuant to state CEQA Guidelines §1506l(b)(3)- Review for Exemption. Ifapproved, the Notice ofExemption will be filed with the county clerks of Los Angeles, Orange, Riverside and San Bernardino counties immediately following action onthe proposedproject. 

### SOCIOECONOMIC ASSESSMENT The proposed amendments to Rule 2449 

### are administrative in nature and do not have any 

### socioeconomic impacts. 

### DRAFT FINDINGS REQUIRED BY THE CALIFORNIA HEALTH AND SAFETY CODE SECTION 40727 Requirements to Make Findings California Health and Safety Code Section 40727 requires that prior to adopting, amending or repealing a rule or regulation, the District Governing Board shall make findings of necessity, authority, clarity, consistency, non-duplication, and reference based on relevant information presented at the public hearing and in the staffreport. The following provides a summary ofthe draftfindings. Necessity A need exists to adopt Proposed Amended Rule 2449

- Control of Oxides of Nitrogen Emissions from Off-Road Diesel Vehicles, to ensure that the proposed amendment addresses an approvability issue raised by U.S. EPA's relating to the appropriate reference of Rule 2449 to State Regulation (Title 13, CCR, Section 2449.2). Authority The District Governing Board obtains its authority to adopt, amend, or repeal rules and regulations from Health and Safety Code §§ 40000, 40001, 40440, 40441, 40447.5, 40463, 40702, 40725 through 40728, and 40910 through 40920.5, inclusive.

SCAQMD SR2449- 2 May 2014Draft StaffReport Proposed Amended Rule 2449 Clarity Proposed Amended Rule 2449

- Control ofOxides ofNitrogen Emissions from Off-Road Diesel Vehicles is written and displayed so that the meaning can be easily understood by persons directly affected by it. Consistency Proposed Amended Rule 2449 - Control of Oxides ofNitrogen Emissions from Off-Road Diesel Vehicles is in harmony with and not in conflict with or contradictory to, existing statutes, court decisions, orstate orfederal regulations. Reference By adopting Proposed Amended Rule 2449- Control ofOxides ofNitrogen Emissions from Off-Road Diesel Vehicles, the District Governing Board will be implementing, interpreting or making specific the provisions ofthe California Health and Safety Code Sections 40000 and 40001 (rules to achieve and maintain ambient air quality standards) and 40440(a) (rules to implementthe AQMP).

SCAQMD SR2449-3 May 2014

### APPENDIXA PROPOSEDAMENDEDRULE 2449(Adopted May 2, 2008) (PAR2449 April2014)
Proposed Amended Rule 2449. Control ofOxides ofNitrogenEmissions from Off-Road Diesel Vehicles The provisions ofArticle 4.8, Chapter9, Title 13 ofthe California Code ofRegulations (CCR), Section 2449.3, in effectJune 15, 2008, were adopted in full by the South CoastAir Quality ManagementDistricton May 2, 2008 throughthe "opt-in"provision provided in the regulation and were made partofthe Rules and Regulations ofthe South CoastAir Quality Management District.
Article 4.8, Chapter9, Title 13 ofthe CCR, Section 2449.3 was amended in December 14, 2011 by the CaliforniaAirResources Board and renumbered to section 2449.2. Effective December 14,2011 Section 2449.2 shall apply to the ownerofany off-road diesel vehicle as described.
The provisions ofthis Regulation apply tothe ownerofany off-road diesel vehicle as described in Section**2449.~~(b)** operating in the South CoastAir Quality Management District. Uponthe District's issuance ofa solicitation for applications for funding, fleet owners subjectto Section 2449

.**....;~** shall submit applications for funding, in accordance with the Rule 2449 Administrative Guidelines developed to implement Section 2449

.**....;~.**

Title 13, Chapter9
Section 2449.3

Section 2449.2 MotorVehicles- Off-Road Vehicles and Engines Pollution Control Devices
Surplus Off-Road Opt-In for NOx (SOON) Program (13 CCR2449.3, June 15, 2008) (SCAQMD Adopted May 2, 2008) Surplus Off-Road Opt-In for NOx(SOON) Program (13 CCR2449.2, December 14, 2011) (SCAQMD Amended xxx)

PAR2449-1