TITLE 13. CALIFORNIA AIR RESOURCES BOARD

NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED MODIFICATIONS

TO THE FLEET RULE FOR TRANSIT AGENCIES AND NEW

REQUIREMENTS FOR TRANSIT FLEET VEHICLES

The Air Resources Board (the Board or ARB) will conduct a public hearing at the

time and place noted below to consider adoption of amendments to the Fleet

Rule for Transit Agencies. The amendments would establish new requirements

for vehicles owned or operated by transit agencies that are not currently covered

by the Fleet Rule, add a new definition for commuter service buses, add

requirements for newly formed transit agencies, modify the urban bus particulate

matter (PM) fleet standard to allow for fleet growth, modify the urban bus engine

emission standard for 2004 to 2006 model year diesel hybrid-electric bus engines

to clarify the standards, and make structural changes that move the existing Fleet

Rule for Transit Agencies from sections devoted to new engine emission

standards to a new section set aside for the regulation of fleet diesel particulate

emissions. This notice summarizes the significant amendments. The Initial

Statement of Reasons, or staff report, presents all of the proposed amendments

in greater detail.

DATE: February 24, 2005

TIME: 9:00 a.m.

PLACE: California Environmental Protection Agency

Air Resources Board

Byron Sher Auditorium, Second Floor

1001 I Street

Sacramento, California 95814

This item will be considered at a two-day meeting of the Board, which will

commence at 9:00 a.m., February 24, 2005, and may continue at 8:30 a.m.,

February 25, 2005. This item may not be considered until February 25, 2005.

Please consult the agenda for the meeting, which will be available at least ten

days before February 24, 2004, to determine the day on which this item will be

considered.

If you have a disability-related accommodation need, please go to

http://www.arb.ca.gov/html/ada/ada.htm for assistance or contact the ADA

Coordinator at (916) 323-4916. If you are a person who needs assistance in a

language other than English, please contact the Bilingual Coordinator at (916)

324-5049. TTY/TDD/Speech-to-Speech users may dial 7-1-1 for the California

Relay Service.
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INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT

OVERVIEW

Sections Affected: Proposed adoption of sections 2023, 2023.1, 2023.2,

2023.3, 2023.4; amendment of sections 1956.1, 2020, 2021; and repeal of

sections 1956.2, 1956.3, 1956.4, title 13, California Code of Regulations (CCR).

Background: In February 2000, the Board confirmed its continued commitment

to improving emissions from public transportation by establishing a new fleet rule

for transit agencies and more stringent emission standards for new urban bus

engines and vehicles. The Board directed staff to report back regularly on

implementation progress and to develop a test procedure to certify hybrid-electric

urban buses (HEBs). Staff reported back to the Board at its September 20,

2001, and March 21, 2002, public meetings.

As instructed by the Board, staff developed modifications to the fleet rule for

transit agencies and a new test procedure for certification of HEBs, which were

adopted at the October 24, 2002, public hearing. Subsequently, the Board

approved further modifications at the June 24, 2004, hearing, to allow any transit

agency on the diesel path to purchase diesel hybrid electric buses at a higher

oxides of nitrogen (NOx) emission level, provided that the transit agency offset

the higher NOx emissions through actions to reduce NOx emissions from other

buses in its fleet. In addition, the June 24, 2004, amendments adjusted the zero

emission bus demonstration requirements to better reflect the actual evolution of

the relevant technology and markets.

Proposed Actions: Staff is proposing to expand the fleet rule to include smaller

diesel and alternative-fueled buses, commuter buses, and heavy-duty trucks

owned or operated by transit agencies. The affected vehicles are called transit

fleet vehicles, and would be subject to a fleet average NOx limit and PM

reduction requirement, phased-in between 2007 and 2010. These standards can

be met by using verified retrofit technology, installing newer engines, or

replacement of vehicles. About 4000 vehicles, which is about 25 percent of all

the vehicles owned or operated by transit agencies, would be affected. The

engines used in newly purchased transit fleet vehicles would remain subject to

the on-road heavy-duty truck engine exhaust emission standards.

Staff’s proposal would require transit agencies to reduce emissions from transit

fleet vehicles. By December 31, 2007, transit agencies must reduce PM

emissions of transit fleet vehicles by 40 percent relative to their January 1, 2005,

baseline, and reduce average NOx emissions to 3.2 grams per brake

horsepower-hour (g/bhp-hr). By December 31, 2010, the transit agencies would

be required to reduce PM fleet emissions by 80 percent relative to their January

1, 2005, baseline, and achieve average NOx fleet emissions of 2.4 g/bhp-hr.
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As a part of these changes, staff is proposing to add a definition for a commuter

service bus, which is a subcategory of a transit fleet vehicle. A commuter service

bus is a bus that would otherwise meet the definition of an urban bus except that

its duty cycle includes very little of the stop-and-go operations of an urban bus.

This definition is necessary to clarify existing policy regarding when a commuter

service bus is not subject to the urban bus new engine emission standards and

requirements in the fleet rule for transit agencies. In this case, a commuter

service bus will be classified as a transit fleet vehicle, not an urban bus. This

definition codifies existing policy based on a guidance issued in 2001.

Another proposed amendment concerns newly formed transit agencies. The

fleet rule for transit agencies is currently silent on how a newly formed transit

agency is to comply with the existing rule, which has requirements that began as

early as 2001. The new proposed language will clarify how new transit agencies

are to comply.

Staff is also proposing to amend the PM reduction schedule for urban buses. At

its October 2002 hearing, the Board modified the mechanism used by transit

agencies to reduce diesel PM emissions from urban buses in recognition of the

lack of available retrofit technology originally projected to be available for PM

reduction from all diesel fuelled urban buses. After working with the transit

agencies, staff recognized that the new PM reduction requirements did not allow

for fleet growth after 2007 (diesel path agencies) or 2009 (alternative-fuel path

agencies) when the transit agencies were to have reduced total fleet PM

emissions to 15 percent of their January 1, 2002, baseline PM emissions. Staff

is proposing to modify the urban bus PM fleet standard to allow for fleet growth

while maintaining emission reductions.

Another modification is being proposed to clarify standards that were

inadvertently left out of the amendments adopted at the June 2004 Board

hearing. The new engine emission standards for 2004 to 2006 model year diesel

hybrid-electric urban buses provide specific language for NOx and PM engine

exhaust emission standards, but are silent on exhaust emission standards for

carbon monoxide, hydrocarbon, and formaldehyde. Staff is proposing language

to clarify the engine exhaust emission standards for these pollutants.

Finally, staff is proposing a codification change to move the existing fleet rule for

transit agencies from title 13, CCR, sections 1956.2-1956.4, currently located

with the engine emission standards, to new sections set aside for controlling

diesel particulate emissions from fleets in title 13, CCR, section 2020, 2023 to

2023.4.
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COMPARABLE FEDERAL REGULATIONS

There are no comparable federal regulations that reduce emissions from in-use

urban buses or other buses and vehicles owned or operated by transit agencies.

AVAILABILITY OF DOCUMENTS AND AGENCY CONTACT PERSONS

The Board staff has prepared a Staff Report: Initial Statement of Reasons (ISOR)

for the proposed regulatory action, which includes a summary of the economic

and environmental impacts of the proposal. The report is titled: “Proposed

Modifications to the Fleet Rule for Transit Agencies: Addition of Proposed

Requirements for Transit Fleet Vehicles.”

Copies of the ISOR and the full text of the proposed regulatory language, in

underline and strikeout format to allow for comparison with the existing

regulations, may be accessed on ARB’s web site listed below, or may be

obtained from the Public Information Office, Air Resources Board, 1001 I Street,

Visitors and Environmental Services Center, 1st Floor, Sacramento, California

95814, (916) 322-2990 at least 45 days prior to the scheduled hearing

February 24, 2005.

Upon its completion after the Board hearing, the Final Statement of Reasons

(FSOR) will be available and copies may be requested from the agency contact

persons in this notice, or may be accessed on ARB’s web site listed below.

Inquiries concerning the substance of the proposed regulation may be directed to

Ms. Kathleen Mead, Air Pollution Specialist, by email at kmead@arb.ca.gov or by

phone at (916) 324-9550, or to Dr. Nancy L.C. Steele, Manager, by email at

nsteele@arb.ca.gov or by phone at (626) 350-6598.

Further, the agency representative and designated back-up contact persons to

whom nonsubstantive inquiries concerning the proposed administrative action

may be directed are Artavia Edwards, Manager, Board Administration &

Regulatory Coordination Unit, (916) 322-6070, or Amy Whiting, Regulations

Coordinator, (916) 322-6533. The Board has compiled a record for this

rulemaking action, which includes all the information upon which the proposal is

based. This material is available for inspection upon request to the contact

persons.

This notice, the ISOR and all subsequent regulatory documents, including the

FSOR, when completed, are available on ARB Internet site for this rulemaking at

http://www.arb.ca.gov/regact/bus04/bus04.htm.
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COSTS TO PUBLIC AGENCIES AND TO BUSINESSES AND PERSONS

AFFECTED

The determinations of the Board's Executive Officer concerning the costs or

savings necessarily incurred by public agencies and private persons and

businesses in reasonable compliance with the proposed regulations are

presented below.

Pursuant to Government Code sections 11346.5(a)(5) and 11346.5(a)(6), the

Executive Officer has determined that the proposed regulatory action will not

create costs or savings to any state agency or in federal funding to the state,

costs or mandate to any local non-transit agency or school district whether or not

reimbursable by the state pursuant to Part 7 (commencing with section 17500),

Division 4, Title 2 of the Government Code, or other nondiscretionary savings to

state or local agencies.

The proposed regulation would impose fiscal impacts on local public transit

agencies. All direct costs that will be required to comply with staff’s proposal and

achieve emissions reductions will only impact public transit agencies. Staff

estimates that the proposed regulation will cost $12.8 million to $26.7 million

overall, with an average estimate of just under $19 million (in 2005 dollars) over

the lifetime of the regulation. In addition, transit agencies can be expected to

experience relatively minor impacts due to additional record-keeping and auditing

requirements.

In developing this regulatory proposal, ARB staff evaluated the potential

economic impacts on representative private persons or businesses. It is possible

that transit passengers may experience slight increases in fares or other fees as

an indirect result of relatively small increases in transit agency costs.

The Executive Officer has made an initial determination that the proposed

regulatory action will not have a significant statewide adverse economic impact

directly affecting businesses, including the ability of California businesses to

compete with businesses in other states, or on representative private persons.

There are no associated costs for business, only for local public transit agencies.

Staff expects there will be benefits to those businesses that produce or sell new

vehicles or engines, and retrofit technology.

In accordance with Government Code section 11346.3, the Executive Officer has

determined that the proposed regulatory action will not result in the elimination of

jobs within the State of California, or the elimination of existing businesses within

the State of California. It is possible that the proposed regulatory action may

lead to the creation of a few jobs or new businesses, or the slight expansion of

existing businesses, in California. A detailed assessment of the economic

impacts of the proposed regulatory action can be found in the ISOR.
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The Executive Officer has also determined, pursuant to title 1, CCR, section 4,

that the proposed regulatory action will not affect small businesses because the

modifications do not directly affect any businesses.

In accordance with Government Code sections 11346.3(c) and 11346.5(a)(11),

the Executive Officer finds that the reporting requirements of the regulation that

apply to businesses are necessary for the health, safety, and welfare of the

people of the State of California.

Before taking final action on the proposed regulatory action, the Board must

determine that no reasonable alternative considered by the Board or that has

otherwise been identified and brought to the attention of the Board would be

more effective in carrying out the purpose for which the action is proposed or

would be as effective and less burdensome to affected private persons than the

proposed action.

BENEFITS OF THE PROPOSAL

ARB staff estimates that in 2010 the proposed amendments would result in the

reduction of 44 pounds per day (lbs/day) of diesel PM, 0.19 tons per day (tpd) of

NOx, 0.04 tpd of HC, and 0.04 tpd of CO emissions. In 2020, staff estimates

reductions of 47 lbs/day of diesel PM, 0.31 tpd of NOx, 0.07 tpd of HC, and 0.05

tpd of CO emissions. The PM reductions represent a 43 percent and 81 percent

reduction in 2010 and 2020, respectively, from the 2000 baseline emissions.

NOx is reduced 29 percent in 2010 and 83 percent in 2020 from the 2000

baseline emissions.

ARB staff estimates that approximately 11 premature deaths would be avoided

by 2020 as a result of emission reductions obtained through this regulation. The

proposed regulation will reduce PM emissions by a cumulative amount of 140

tons by the end of year 2020, and therefore prevent an estimated 10 premature

deaths (5 to 15, 95 percent confidence interval (95% CI)) by year 2020. In

addition, staff estimates that the proposed regulation will accrue a cumulative

reduction of 620 tons of NOx by the end of 2020, therefore avoiding an estimated

one premature death (0 to 1, 95% CI).

The estimated cost of the proposed regulatory amendments is $0.90 to $1.90 per

pound of NOx and $42 to $88 per pound for PM. These values are within the

range of recently adopted regulations.

Staff calculated the value of avoiding one premature death, arriving at a range

from $4 million to $6 million (in 2004 dollars). For the proposed regulation, the

estimated cost of control per premature death prevented is about $1.5 million to

$2 million for this proposal which is about three times lower the United States

Environmental Protection Agency’s benchmark for value of avoided death. This
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rule is, therefore, a cost-effective mechanism to reduce premature deaths that

would otherwise be caused by diesel emissions without this regulation.

SUBMITTAL OF COMMENTS

The public may present comments relating to this matter orally or in writing at the

hearing, and in writing or by e-mail before the hearing. To be considered by the

Board, written submissions not physically submitted at the hearing must be

received no later than 12:00 noon, February 23, 2005, and addressed as

follows:

Postal mail is to be sent to:

Clerk of the Board

Air Resources Board

1001 I Street, 23rd Floor

Sacramento, California 95814

Electronic mail is to be sent to: bus04@listserv.arb.ca.gov and received at the

ARB no later than 12:00 noon, February 23, 2005.

Facsimile transmissions are to be transmitted to the Clerk of the Board at

(916) 322-3928 and received at the ARB no later than 12:00 noon

February 23, 2005.

The Board requests but does not require that 30 copies of any written statement

be submitted and that all written statements be filed at least 10 days prior to the

hearing so that ARB staff and Board Members have time to fully consider each

comment. The Board encourages members of the public to bring to the attention

of staff in advance of the hearing any suggestions for modification of the

proposed regulatory action.

STATUTORY AUTHORITY AND REFERENCES

This regulatory action is proposed under that authority granted in Health and

Safety Code sections 39600, 39601, 39659, 39667, 39701, 41511, 43013,

43018, 43100, 43101, 43104, 43701(b) and 43806, and section 28114 of the

Vehicle Code. This action is proposed to implement, interpret and make specific

sections 39002, 39003, 39017, 39018, 39033, 39500, 39650, 39657, 39667-

39675, 39700, 39701, 40000, 41510, 41511, 43000, 43000.5, 43009, 43013,

43018, 43101, 43102, 43104, 43105, 43700, 43701(b), 43801, 43806 of the

Health and Safety Code, and sections 233 and 28114 of the Vehicle Code.
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HEARING PROCEDURES

The public hearing will be conducted in accordance with the California

Administrative Procedure Act, Title 2, Division 3, Part 1, Chapter 3.5

(commencing with section 11340) of the Government Code.

Following the public hearing, the Board may adopt the regulatory language as

originally proposed, or with non-substantial or grammatical modifications. The

Board may also approve the proposed regulatory language with other

modifications if the text as modified is sufficiently related to the originally

proposed text that the public was adequately placed on notice that the regulatory

language as modified could result from the proposed regulatory action; in such

event the full regulatory text, with the modifications clearly indicated, will be made

available to the public, for written comment, at least 15 days before it is adopted.

The public may request a copy of the modified regulatory text from the ARB’s

Public Information Office, Air Resources Board, 1001 I Street, Visitors and

Environmental Services Center, 1st Floor, Sacramento, California 95814,

(916) 322-2990.

CALIFORNIA AIR RESOURCES BOARD

/s/

Catherine Witherspoon

Executive Officer

Date: December 28, 2004