### TITLE 13, CALIFORNIA CODE OF REGULATIONS, SECTION 2 449.3

SURPLUS OFF-ROAD OPT-IN FOR NOX (SOON) PRGRAMThis Page Begins with 2449.3

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2449.3 Surplus Off-Road Opt-In for NOx (SOON) Program

(a) Purpose

To achieve additional reductions of oxides of nitro gen (NOx) emissions from in-use offroad diesel-fueled vehicles in California. The redu ctions must be surplus to those that would otherwise be achieved through implementation of title 13, California Code of Regulations, sections 2449, 2449.1 and 2449.2, “Reg ulation for In-Use Off-Road Diesel

Vehicles”.

( b) Applicability

(1) District Applicability - Section 2449.3 applies to any air quality manage ment district or air pollution control district (jointly referred to hereafter as air district) whose governing board elects to opt into the provis ions of this section as set forth in section 2449.3(f) below.

(2) Fleet Applicability

– Section 2449.3 applies to a fleet that: (A) Operates individual vehicles within the air dis trict; (B) As of January 1, 2008, on a statewide level, co nsisted of more than 40 percent Tier 0 and Tier 1 vehicles, and; (C) Has a statewide fleet with maximum power greate r than 20,000 horsepower (hp).

(c) Definitions

The definitions in title 13, CCR, section 2449(c) a pply, along with the following

definitions:

(1) Contract period means the period of time in which the vehicle parti cipates in the program and is under contract to the air district t o achieve additional emission

reductions. (2) Operated within the district means a vehicle that currently operates within the boundaries of the air district and, during the thre e years immediately prior to the solicitation deadline, operated at least one hundre d hours per year and operated

more hours within the boundaries of the air distric t than in any other district. (3) Project

means actions on one vehicle to reduce NOx emissio ns, such as retrofit, repower, or vehicle replacement, for which funding is requested. (4) Solicitation means a public announcement by the air district, re questing that fleets submit grant applications to the air distric t to participate in emission reduction incentive programs under this section. (5) Solicitation deadline means the last day, as provided in the solicitation , that an application may be physically received by the air d istrict.

(d) Requirements

(1) If an air district, having held a public hearing an d opted into the SOON program and made the program mandatory per section 2449.3(e )(9), issues a solicitation for applications for funding under the SOON program , and if the solicitation soThis Page Begins with 2449.3(d)(1)

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requires, a fleet that meets the applicability crit eria of subsection (b) on the date of the solicitation must, before the solicitation d eadline, do the following: (A) Report to District and ARB

- File a report, in a format approved by the Executive Officer, of all information required unde r section 2449(g) with the

air district and ARB on its statewide fleet and tha t part of the fleet that has operated within the air district, as defined in sec tion (c)(2) above. If the solicitation deadline is before April 1, 2009, the fleet must provide information regarding the fleet as it existed on January 1, 200 8. If the solicitation deadline is on or after April 1, 2009, the fleet mu st provide the information that was reported to ARB on the most recent April 1 reporting date. (B) Calculate NOx index - Determine the NOx index for vehicles that operat ed within the air district for the year in which the s olicitation deadline occurs according to the formula in section 2449.1(a)(1)(A) 1. (C) Calculate NOx target rate - Determine the NOx target rate for vehicles that operated within the air district for the year in wh ich the solicitation deadline occurs according to the formula in section 2449.1(a )(1)(A)1, and using the NOx targets set forth in Table 1 below. If there i s no NOx target rate for the year in which the solicitation deadline occurs, the nearest future target rate

should be used.

Table 1: NOx Targets for each Max Hp Group [g/bhp- hr] Compliance

Date: March 1

of Year 25-49

hp 50-74 hp 75-99 hp 100-174 hp 175-299

hp 300-599

hp 600-750

hp >750

hp

2011 5.6 6.2 6.7 6.0 5.4 5.1 5.3 6.4

2014 4.9 5.1 5.2 4.7 2.8 2.7 2.7 4.2

2017 4.2 4.1 3.8 3.4 1.5 1.5 1.5 3.2

2020 3.5 3.2 2.4 2.2 0.9 0.9 0.9 2.6

2023 3.5 3.2 2.4 2.2 0.9 0.9 0.9 2.6

(D) Apply for funding – Except as provided in section 2449.3(d)(2) and 2449.3(e)(3) below, a fleet for which the NOx index , as calculated in section 2449.3(d)(1)(B), is greater than the NOx target rat e, as calculated in section 2449.3(d)(1)(C), must apply for SOON funding. The application submitted must be completed according to the guidelines and c onditions established under the solicitation and, if the necessary NOx re trofits, repower, or vehicle replacements are available, must indicate how NOx r etrofits, repowers, or vehicle replacements for which funding is requested will bring the NOx index for vehicles that operated within the air district from where it would have been under compliance with section 2449.1 to less than o r equal to the NOx target rate calculated in section 2449.3(d)(1)(C). The ap plication must also indicate whether the fleet wants the application to be given high priority for SOON program funding by the district. The funding prior ity shall be determined under the air district guidelines developed per sec tion 2449.3(f)(2). (E) Achieve NOx reductions - Fleets that receive SOON program funding must complete the actions for which they were funded per the conditions of the solicitation. Fleets that do not receive requested SOON program funding areThis Page Begins with 2449.3(d)(1)(E)

48 not required to take actions beyond compliance with the in-use off-road diesel vehicle regulation, as specified in sections 2449, 2449.1, and 2449.2. (2 ) Fleets not meeting the applicability provisions - A fleet that operates
individual vehicles within the air district, but do es not meet the applicability provisions of sections 2449.3(b)(2)(B) and 2449.3(b )(2)(C), are not required to file a report with the ARB or the air district unde r section 2449.3(d)(1). It is also not required to apply for funding under subsection (d)(1)(D), but may file a report with ARB or the air district under section 2449.3(d )(1) and apply for funding if the NOx index calculated for its fleet operating within the air district exceeds the NOx target rate, and the fleet would like to qualify fo r funding. If the air district approves the fleet’s application for funding, the f leet must achieve the NOx reductions as set forth in subsection (d)(1)(E). P articipating in the SOON program in one year does not obligate the fleet to participate in subsequent

years. (3) Air districts that opt into the SOON program – Districts must prioritize requested projects based on the optimum NOx cost-ef fectiveness and on whether the fleet requesting the SOON program fundi ng has requested high priority for SOON program funding. Air districts m ust report to ARB, in a format approved by the Executive Officer, all projects fun ded under the SOON program, including the equipment identification number of al l vehicles funded.

( e) Special Provisions
–

(1) Accounting for the in-use off-road diesel vehicle r ule - (A) Reductions achieved through the SOON program mu st be surplus, over the entire contract period, to those required by the “R egulation for In-Use OffRoad Diesel Vehicles”, sections 2449-2449.2 above. (B) During the contract period, vehicles equipped w ith NOx retrofits, repowered with new engines, or that have been replaced using SOON program funding,

cannot use this lower emission rate to calculate NO x indices, PM indices, NOx target rates, PM target rates, turnover credit and retrofit credit under sections 2449.1 and 2449.2. Instead, for the purpo ses of calculating NOx indices, PM indices, NOx target rates, PM target ra tes, turnover credit and retrofit credit under sections 2449.1 and 2449.2, t hese vehicles must be reflected as if the actions taken under the SOON pr ogram did not occur. Actions taken using SOON program funding may be use d for determining compliance under sections 2449.1 and 2449.2 after t he completion of the SOON program project contract period for that vehic le. For example, if a Tier 0 vehicle is repowered with a Tier 3 engine with SO ON program funds, for purposes of compliance with sections 2449.1 and 244 9.2, that vehicle is still

treated as if it were a Tier 0 until the end of the contract period for the SOON program project. (C) If a fleet pays for a retrofit that is installe d concurrently with a repower or vehicle replacement funded with SOON program fundin g, the fleet may count the retrofit toward determining compliance under se ction 2449.2. If a fleet’s vehicle is repowered using SOON program funding wit h a Tier 4 engine that comes with an original engine manufacturer diesel p articulate filter, and if the fleet pays a portion of the repower costs such that it offsets the cost of anThis Page Begins with 2449.3(e)(1)(C)

49 equivalent retrofit diesel particulate filter, the fleet may count the retrofit toward determining compliance under section 2449.2. (2) Turnover in section 2449.1 - A fleet may apply to the Executive Officer for a n extension from the requirements in section 2449.1(a )(2)(A) if, using the accounting provisions in section 2449.3(e)(1), sect ion 2449.1(a)(2)(A) would require, prior to March 1, 2014, a fleet to turn ov er vehicles that are Tier 2 or better. The exemptions in section 2449.1(a)(2)(A)4 .a. and section 2449.1(a)(2)(A)5. for vehicles less than 10 years o ld and Tier 1 vehicles do not apply to the SOON program. (3) Compliance plans

- In addition to a SOON program application, a fle et applying for SOON program funding must prepare and submit to the air district a compliance plan, in the format described in the dis trict guidelines, laying out the actions it is required to take under sections 2449. 1 and 2449.2 and the actions for which it is applying for funding under section 2449.3. Compliance plans must demonstrate that in the absence of any actions take n to satisfy section 2449.3, the fleet will be able to meet the requirements of sections 2449.1 and 2449.2 through the remaining actions set forth in the plan

. (4) Surplus

- Participation in the SOON program does not reduc e the actions required for any fleet to comply with any requireme nts in the statewide in-use offroad diesel vehicle regulation under sections 2449. 1 and 2449.2. (5) Tracking devices - An air district may require any vehicle repowered , retrofitted, or replaced with incentive money through the SOON p rogram to be equipped with a vehicle location device (per the air distri ct’s guidelines and conditions for receiving funding) to ensure that the vehicle is us ed in the air district for the required percent of operating hours. (6) Particulate Matter Retrofits - a. The exemption from retrofit requirements for veh icles less than 5 years old in section 2449.2(a)(2)(A)4.a. does not apply to vehic les that are replaced or repowered with SOON program funds.

b. If a fleet has a vehicle that has been retrofitt ed within the last six years with a Level 2 or 3 VDECS, which was the highest level VDE CS at the time of retrofit, the fleet may but is not required to appl y for SOON funding for that

vehicle. c. A fleet that receives SOON funding to repower or replace a vehicle is not required to install the highest level VDECS along w ith the repower or replacement.
(7) Funding Guidelines - Projects funded under the SOON program with Carl Moyer program money must be administered consistent with applicable Carl Moyer program guidelines, except as noted in sectio n 2449.3(e)(6)c. If a project is funded from other sources, the SOON program must be administered consistent with any applicable guidelines. The air district shall develop guidelines for administration of the SOON program, as provided in section 2449.3(f)(2).
(8) Vehicles Scheduled to Leave District – A fleet that has operated within the air district as defined in section 2449.3(c)(1) but tha t is planning to move vehicles

out of the air district such that the vehicles will not operate enough hours in the air district to qualify for SOON funding may leave such vehicles out of the NOx index calculation in section 2449.3(d)(1)(B), the N Ox target rate calculation in section 2449.3(d)(1)(C), and the application for fu nding in sectionThis Page Begins with 2449.3(e)(8)

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2449.3(d)(1)(D). The fleet must submit a statement under penalty of perjury to the district for each such vehicle stating its inte nt to move each such vehicle out

of the district. (9) Voluntary or Mandatory Nature of SOON - An air district, having held a public hearing and opted into this regulation, may issue a solicitation for applications for funding under the SOON program. a. For fleets in the South Coast Air Quality Manage ment District and San Joaquin Valley Air Pollution Control District, soli citations with a deadline before April 2, 2009, shall be voluntary. For solicitati ons with a deadline on or after April 2, 2009, the South Coast Air Quality Manageme nt District and San Joaquin Valley Air Pollution Control District may e lect to make participation by fleets voluntary or mandatory. b. In any district other than the South Coast Air Q uality Management District or San Joaquin Valley Air Pollution Control District, for solicitations with a deadline before April 2, 2010, participation by fle ets is voluntary. For solicitations with a deadline on or after April 2, 2010, the district may choose to make participation by fleets voluntary or mandatory

. c. The solicitation shall announce the air district ’s decision regarding voluntary or mandatory participation.

(f) Local Air District Opt-In

(1) To participate in the SOON program, an air district ’s governing board must hold a formally noticed public hearing, where public comme nt is taken, and, by majority vote, elect to opt into the program. As part of th is hearing, for years when section 2449.3(e)(9) gives the district a choice be tween a voluntary and mandatory SOON program, the air district’s governin g board must decide whether participation by fleets is voluntary or man datory.
(2) District Guidelines - An air district opting into section 2449.3 must develop, through a public process including a duly noticed p ublic workshop and formally noticed public hearing, additional administrative p rovisions necessary to implement this section, including, but not limited to, funding guidelines (as required under section 2449.3(e)(7)), compliance pl anning requirements, and reporting and monitoring requirements. Funding gui delines may include limitations on the cost-effectiveness of projects t hat may be funded and must include the method used for prioritizing projects b ased on cost-effectiveness and whether applying fleets requested high priority for SOON program funding, and a description of any requirements on fleets that re ceive SOON funding to pay part of the SOON project cost. Compliance planning guidelines must indicate the format and length of compliance plans. Air dis trict guidelines may include a pre-application process that collects vehicle data (model year, horsepower, hours of use) and then requires full SOON project a pplications only for vehicles likely to receive funding.This Page Begins with 2449.3(e)(8)

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(3) ARB Approval of District Guidelines - Before any guidelines, including administrative or funding guidelines, approved by a n air district take effect, they must be approved by the Executive Officer. Ai r district staff shall submit proposed guidelines to the Executive Officer before they are acted on by the district’s governing board. The Executiv e Officer will respond within 30 days with a description of any required changes to the propos ed guidelines necessary for Executive Officer approval. In evalu ating proposed air district guidelines, the Executive Officer shall co nsider, among other factors, the adequacy of cost-effectiveness criteri a, whether fleet requests for high priority for SOON funding are given prefer ence, and uniformity of district guidelines between air districts. After g uidelines are adopted by a district’s governing board, air district staff shal l submit the adopted guidelines to the Executive Officer. The Executive Officer will respond within 30 days with approval or a description of an y required changes to the guidelines. (4) ARB Authority

– ARB has sole authority to enforce the requiremen ts of

section 2449.3. The Executive Officer retains the authority to review any

district’s administration of section 2449.3 and to address any unforeseen

circumstances or events.

Authority and References- This regulatory action is proposed under the authority granted to the ARB in Health and Safety Code sectio ns 39002, 39515, 39516,
39600, 39601, 39602, 43000, 43000.5, 43013, 43016, and 43018. This action is proposed to implement, interpret, or make specific Health and Safety Code
sections 39002, 39515, 39516, 39600, 39601, 39602, 39650, 39656, 39657,
39658, 39659, 39665, 39667, 43000, 43000.5, 43013, 43016, and 43018.