1 State of California

AIR RESOURCES BOARD

Second Notice of Public Availability of Modified Te xt

PUBLIC HEARING TO CONSIDER THE ADOPTION OF NEW EMIS SION STANDARDS, FLEET REQUIREMENTS, AND TEST PROCEDURES FOR

FORKLIFTS AND OTHER INDUSTRIAL EQUIPMENT

Public Hearing Date: April 20, 2006 Postponed to: May 25, 2006 First Public Availability of Modified Text Date: D ecember 1, 2006 Second Public Availability of Modified Text Date: February 1, 2007 Deadline for Public Comment: February 16, 2007

At its public hearing on May 25, 2006, the Air Reso urces Board (ARB or Board) approved amendments and adoptions to title 13, Cali fornia Code of Regulations (CCR), and to several documents incorporated by reference therein. The regulations approved for amendment are sections 2430, 2431, 2433, 2434, and 2438. The regulations approved for adoption are sections 2775, 2775.1, 27 75.2, 2780, 2781, 2782, 2783, 2784, 2785, 2786, 2787, 2788, and 2789.

The approved documents incorporated by reference ar e: 1) the amendment of incorporated “California Exhaust Emission Standards and Test Procedures for New 2001 and Later Off-Road Large Spark-Ignition Engine s,” Parts I and II; 2) the adoption of incorporated “California Exhaust Emission Standa rds and Test Procedures for New 2007 through 2009 Model-Year Off-Road Large Spark-I gnition Engines;” 3) the adoption of incorporated “California Exhaust Emissi on Standards and Test Procedures for New 2007 and Later Model-Year Off-Road Large Sp ark-Ignition Engines;” and 4) the adoption of incorporated “California Exhaust and Em ission Standards and Test

Procedures for New 2010 and Later Model-Year Off-Ro ad Large Spark-Ignition Engines.”

The approved regulations are designed to reduce the ozone-forming emissions of hydrocarbons and oxides of nitrogen (HC + NOx) from new and in-use forklifts and other industrial equipment. The regulations meet a commitment made in the 2003 State and Federal Strategy for the State Imple mentation Plan, approved by the Board on October 23, 2003.

The Board’s Action

At the hearing, the Board adopted Resolution 06-11, approving the amended and adopted regulations with modifications (Attachment B of the Resolution). In the Resolution, the Board directed the Executive Office r to incorporate the approved modifications into the proposed regulatory text, wi th such other conforming modifications as may be appropriate, and to make th e modified text available for a supplemental comment period. As a result, on Decem ber 1, 2006, the first Notice of2

Public Availability of Modified Text and Supporting Documents and Information (first 15-day notice) was issued. The public comme nt period for the first 15-day notice was extended and then ended on January 12, 2007.

Modified Text Being Made Available

Based on the comments that were received in respons e to the first 15-day notice, additional modifications to the regulatory text are being proposed in a Second Notice of Public Availability of Modified Text (second 15-day notice). The Board’s approved modified text, including staff’s subsequent modific ations, is appended to this notice as Attachment 1. By this notice, the modified text is being made available for public comment prior to the final action by the Board’s Ex ecutive Officer. All of these documents are available online for public inspectio n at ARB’s Internet website for this rulemaking at http://www.arb.ca.gov/regact/lore2006/lore2006.htm . Copies of these documents may be obtained from the Board’s Public I nformation Office by calling (916) 322-2990 or by visiting the 1 st floor Visitors and Environmental Services Center, 1001 I Street, Sacramento, California 95814. They may also be obtained from Ms. Kathryn Leuterio at (916) 322-1731, or by email at kleuteri@arb.ca.gov

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Summary of Proposed Modifications

The following summarizes the proposed substantive m odifications and the rationale for making them. The section numbers and paragraphs ar e referenced as renumbered in

the modified text.

Title 13, California Code of Regulations, § 2433 Em ission Standards and Test Procedures – Off-Road Large Spark-ignition Engines (b ) (1) To better delineate between mandatory and optional standards, this section is reorganized. Subparagraph (b)(1)(A) still contains the required exhaust emission standards, but (b)(1)(B) now contains the United St ates Environmental Protection Agency (U.S. EPA) alternative certification formula . The optional exhaust emission standards formerly contained in (b)(1)(B) are now i n subparagraph (b)(2). And subparagraph (b)(1)(c) has been added containing a reference to the field testing standards contained in 40 CFR Section 1048.101(c).

Additionally, two corrections and an addition are m ade to the notes section accompanying the mandatory standards table in subpa ragraph (b)(1)(A). Both corrections to note (1) clarify that emissions are to be reported to the ARB in units of grams per kilowatt-hour (g/kW-hr). Emissions were previously reported in units of grams per brake horsepower-hour; however, ARB in ha rmonizing with the U.S. EPA is now using the kilowatt-hour as the measurement unit for power. The addition of note (5) provides the HC+NOx and CO standards for model year 2007 and newer severe-duty engines. This information was containe d in the incorporated by reference “California Exhaust and Evaporative Emission Standa rds and Test Procedures for New 2010 and Later Off-Road Large Spark-ignition Engine s” (40 CFR, Part 1048), but was inadvertently omitted from this section and from th e incorporated by reference “California Exhaust and Evaporative Emission Standa rds and Test Procedures for New3

2007 through 2009 Off-Road Large Spark-ignition Eng ines” (40 CFR, Part 1048). The original note (5) is renumbered to note (6).

(b)(2) The alternative certification formula originally c ontained in (b)(2) is now contained in (b)(1)(B). New subparagraph (b)(2)(A) contains the optional exhaust emission standards formerly contained in (b)(1)(B). New subparagraph (b)(2)(B) contains the field testing standards accompanying t he optional standards in (b)(2)(A), consistent with U.S. EPA’s Blue Sky standards. The se field testing standards were part of the Additionally, a note is added to the optio nal exhaust emissions table in subparagraph (b)(2)(A) clarifying that emissions ar e to be reported to the ARB in units of grams per kilowatt-hour for the reasons discusse d in (b)(1) above.

(b)(4)(B) A date is added to the reference in this subparagr aph to specify that the applicable evaporative emission specifications for non-metallic fuel lines is contained in the November 1996, and not the November 2004, SAE J 2260.

(b)(4)(D) References to 40 CFR Sections 1048.105 and 1048.24 5 are added for manufacturers opting to use design-based certificat ion for the evaporative emission

standards.

Incorporated “California Exhaust and Evaporative Em ission Standards and Test Procedures for New 2007 through 2009 Off-Road Large Spark-ignition Engines” (40 CFR, Part 1048) The title is changed to remove the reference to “PA RT 1:” as there is only one part of the “California Exhaust and Evaporative Emission St andards and Test Procedures for New 2007 through 2009 Off-Road Large Spark-ignition Engines.”

§1048.101 What exhaust emission standards must my engines meet? (a)(2) A note is added to the exhaust emission standards table clarifying that emissions are to be reported to the ARB in units of grams per kilowatt-hour for the reasons discussed for title 13, CCR, section 2433(b)(1) abo ve. Other requirements are added providing the HC+NOx and CO standards for model yea r 2007 through 2009 severe-duty engines. Both the note and the severe- duty engine requirements were to have been carried over from the corresponding exhau st emission standards table in the incorporated by reference “California Exhaust and E vaporative Emission Standards and

Test Procedures for New 2010 and Later Off-Road Lar ge Spark-ignition Engines,” but were inadvertently omitted.

§1048.120 What emission-related warranty requireme nts apply to me? A provision is added referencing the State’s warran ty requirements. The intent of the additional provision is to clarify that both sets o f warranty requirements – title 13, CCR, section 2436 and 40 CFR Section 1048.120 – apply.

§1048.135 How must I label and identify the engine s I produce? A provision is added referencing the State’s labeli ng requirements. The intent of the additional provision is to clarify that both sets o f labeling requirements – title 13, CCR, section 2434 and 40 CFR Section 1048.135 – apply.4

§1048.140 What are the provisions for certifying o ptional lower-emission standard engines? Introductory language is corrected so that the requ irements being applied to optional lower-emission standard (OLES) engines are those fo r model year 2007-2009 engines and not model year 2010 engines. The 2010 referenc e was carried over in error from the corresponding exhaust emission standards table in the incorporated by reference “California Exhaust and Evaporative Emission Standa rds and Test Procedures for New 2010 and Later Off-Road Large Spark-ignition Engine s.”

A note is added to the optional exhaust emission st andards table clarifying that emissions are to be reported to the ARB in units of grams per kilowatt-hour for the reasons discussed earlier for title 13, CCR, sectio n 2433(b)(1).

Incorporated “California Exhaust and Evaporative Em ission Standards and Test Procedures for New 2010 and Later Off-Road Large Sp ark-ignition Engines”

§1048.101 What exhaust emission standards must my engines meet? (a)(2) The first note accompanying the exhaust emission standards table is modified to reflect that emissions are to be reported to the AR B in units of grams per kilowatt-hour for the reasons discussed in title 13, CCR, section 2433(b)(1) earlier. The language providing the HC+NOx and CO standards for model yea r 2010 and later severe-duty engines is modified to reflect the correct federal HC+NOx standard for these engines.

§1048.120 What emission-related warranty requireme nts apply to me? A provision is added referencing the State’s warran ty requirements. The intent of the additional provision is to clarify that both sets o f warranty requirements – title 13, CCR, section 2436 and 40 CFR Section 1048.120 – apply.

§1048.135 How must I label and identify the engine s I produce? A provision is added referencing the State’s labeli ng requirements. The intent of the additional provision is to clarify that both sets o f labeling requirements – title 13, CCR, section 2434 and 40 CFR Section 1048.135 – apply.

§1048.140 What are the provisions for certifying o ptional lower-emission standard engines?

A correction is made to the section title of the se ction being deleted and replaced to clarify that it is Blue Sky Series engine standards that are being replaced and not optional lower-emission engine standards.

A note is added to the optional exhaust emission st andards table requiring emissions to be reported to the ARB in units of grams per kilowa tt-hour for the reasons discussed for title 13, CCR, section 2433(b)(1).5

Title 13, California Code of Regulations, § 2775(d) Definitions

“Agricultural Crop Preparation Services” Language excluding manufacturing activities such as the freeze drying of fruits and vegetables, the slicing and dicing of garlic or oni ons, the flaking of potato products, and the making of bouillon, noodle mixes, rice mixes, s oup mixes, sauce mixes, and salad dressing mixes is removed from the definition. Thi s language was included in the first Notice of Availability of Modified Text to provide examples of the types of dried and dehydrated food manufacturing activities that were not considered to be part of the “dehydrators” definition and thus not part of the “ agricultural crop preparation services” definition. Stakeholders expressed a concern that excluding certain activities implied that other related activities might be included. S ince the existing “dehydrators” definition already stipulates those dried and dehyd rated food manufacturing activities that are “included,” staff concurs that there is no need to exemplify excluded activities.

“Airport Ground Support Equipment” Language is added to the definition to clarify that categories of GSE designed for on-road use, but dedicated to GSE operations and no t licensed for on-road use may be included in the fleet average calculations. The cl arification ensures that on-road equivalent GSE may not contain a license plate from any state, not just California.

“Leased forklift” A definition is added that clarifies the term as ap plied to forklifts used in agricultural crop preparation services in title 13, CCR, section 2775.1(c)(3).

“Rental forklift”

A definition is added that clarifies the term as a pplied to forklifts used in agricultural crop preparation services in title 13, CCR, section 2775.1(c)(3).

“South Coast Air Basin Airports” This definition has been removed as it only applied to sections that were removed in the first Notice of Availability of Modified Text (sect ions 2775.1(b), (b)(1), and (b)(2)).

Title 13, California Code of Regulations, § 2775.1. Standards

(c), (c)(1), and (c)(2) The word “owned” is removed from section (c) and p laced into sections (c)(1) and (c)(2) to clarify that section (c) provides requirements not only for owned forklifts, but requirements for rental and le ased forklifts as well.

Title 13, California Code of Regulations, § 2775.2. Compliance Requirements for Fleet Operators

(a) and (b) Provisions are further modified in these sections to clarify that only medium and large facilities and those with a non-forklift fleet (four or more pieces of equipment by definition) are required to conduct a baseline i nventory and keep records.6

Comments and Subsequent Action

In accordance with section 11346.8 of the Governmen t Code, the Board directed the Executive Officer to amend sections 2430, 2433, and 2434, and adopt sections 2775,
2775.1, 2775.2, 2780, 2781, 2782, 2783 2784, 2785, 2786, 2787, 2788, and 2789, title 13, CCR, and the amendments and adoptions of documents incorporated therein, after making the modified regulatory language avail able to the public for a supplemental written comment period of at least 15 days. The Bo ard further provided that the

Executive Officer shall consider such written comme nts as may be submitted during this period, shall make such modifications as may be app ropriate in light of comments received, and shall present the regulations to the Board for further consideration if she

determines that this is warranted.

Written comments on the second 15-day notice modifi cations may be submitted by postal mail, electronic mail, or facsimile as follo ws:

Postal Mail is to be sent to:

Clerk of the Board

Air Resources Board 1001 “I” Street, 23 rd Floor Sacramento, California 95814

Electronic submittal: http://www.arb.ca.gov/lispub/ comm/bclist.php

Facsimile submissions are to be transmitted to: (9 16) 322-3928

In order to be considered by the Executive Officer, comments must be directed to the

ARB in one of the three forms described above and r eceived by the ARB by 5:00 p.m. on the deadline date for public comment listed at t he beginning of this notice. Only comments relating to the above-described modificati ons to the text of the regulations will be considered by the Executive Officer.

Attachment