ATTACHMENT A

State ofCalifornia AIR RESOURCES BOARD
Resolution 03-37 February 26, 2004 Agenda Item No.: 03-10-2 WHEREAS, sections 39600 and 39601 ofthe Health and Safety Code authorize the Air ResourcesBoard ("ARB" or"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, section 39618 ofthe Health and Safety Code classifies refrigerated trailers as mobile sources to be regulated bythe Air Resources Board on a statewide basis to prevent confusion concerning whether refrigerated trailers are stationary sources when not being driven and to prevent inconsistent regulation byair pollution control and airquality managementdistricts when such vehicles are operated in more than one district; WHEREAS, section 41511 provides thatforthe purpose of carrying out its duties, the Air Resources Board may adopt rules and regulations to require the owneror

.the operator ofany pollution emission source totake such action as the Air

Resources Board may determine to be reasonable forthe determination ofthe amountofemissions from such source; WHEREAS, under section 39650 ofthe Health and Safety Code, the Legislature finds and declaresthat it is the public policy ofthe State that emissions oftoxic air contaminants should be controlled to levels which prevent harm tothe public health; WHEREAS, onAugust27, 1998, the Board identified diesel exhaust particulate matter as a toxic air contaminant pursuantto article 3 (commencing with section 39650), chapter3.5, part 2, division 26 ofthe Health and Safety Code; WHEREAS, in identifying diesel exhaust particulate matter as a toxic air Contaminant, the Board determined that there is not sufficient scientific evidence to support identification ofa threshold level belowwhich no significant adverse health .effects are anticipated, as codified in title 17, California Code of Regulations, section 93000; WHEREAS, pursuantto section 39665 ofthe Health and Safety Code, the Air Resources Board staff prepared, and on September 28, 2000, the Board approved, a comprehensive risk reduction plan to significantly reduce diesel exhaust particulate matteremissions from**diesel~ft~eled** engines and vehicles:.**~"** ··""'

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WHEREAS, the Office ofEnvironmental Health Hazard Assessment listed under section 39669.5(a) ofthe Health and SafetyCode diesel exhaust particulate matterand othercompounds associated with diesel exhaust as possibly causing infants and children to be especially susceptible to illness; WHEREAS, sections 39658, 39665, 39666, and 39667 ofthe Health and Safety Code authorize the Board to establish airborne toxiccontrol measures for substances identified as toxic aircontaminants in accordance with specified criteria; WHEREAS, in fulfilling the requirements ofthe aforementioned sections, the Board is required to consider adoption ofan airborne toxic control measure for sources, including mobile sources, to achieve the maximum possible reduction in public exposure based on its prior determination notto specify a threshold exposure level fordiesel exhaust particulate matter under section 39662 

### ofthe Health and Safety Code; WHEREAS, an airborne toxic control measure for an existing source, including a mobile source, developed pursuant to sections 39666 and 39667 ofthe Health and Safety Code is required to be based on application or utilization ofthe best available control technologies or more effective control methods, unlessthe Board determines, based on an assessment of risk, that an alternative level of emission reduction is adequate or necessaryto prevent an endangerment of public health; WHEREAS, the diesel exhaust particulate matter risk reduction plan identified the temperature-control systems associated with refrigerated straight truckvans, trailervans, railcars, and shipping containers, which are commonly known as transport refrigeration units and transport refrigeration unit generator sets (hereinafterdesignated as TRUs and.TRU generator sets); WHEREAS, sections 43013(b) and 43018 additionally provide the Air Resources Board with broad authority to adoptemission standards and regulations for vehicular and other mobile sources; · WHEREAS, diesel-fueled engines associated with TRUs and TRU generatorsets are a source ofdiesel exhaust particulate matter; WHEREAS, Air Resources Board staff has determined that neitherthe current emission standards forengines the State designates as "off-road" and the United States Environmental Protection Agency designates as "nonroad," northe proposed United States Environmental Protection Agency Tier4 emissions standards all ofwhich applyonlyto new, but not in-use, "nonroad" engines, will sufficiently reduce diesel exhaust particulate matter emissions from the in-use TRUs and TRU generator sets, which comprise a significant portion ofthe California fleet; ·Resolution 03-37 

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WHEREAS, the Air Resources Board staff has determined that aligning the proposed in-use performance standards

## witn the proposed federal Tier4 emission standardsfor new engines is anticipated 

### to achieve, in the mostcost effective manner, the maximum feasible emission reductions ofdiesel PM generated from in-use TRU engines; WHEREAS, the diesel exhaust particulate matter risk reduction plan included recommendations for reducing emissions, exposure, andassociated potential cancer risk from TRU and TRU generator set engines, particularly nearfacilities where TRUs and TRU generator sets operate; WHEREAS, to augmentthe general information and recommendations provided in the diesel exhaust particulate matter risk reduction plan, the Air Resources Board staff met and worked with affected private industry, federal, State, and local public agencies, and the public; WHEREAS, with the information and comments received from such meetings, the ARB staff prepared a report, entitled the Initial Statementof Reasonsfor Proposed Rulemaking- Airborne Toxic Control Measurefor In-Use Diesel-Fueled Transport Refrigeration Units ITRU)and TRU Generator Sets, and Facilities Where TRUs Operate (hereinafterdesignated as the Initial Statement of Reasons); WHEREAS, the Initial Statement ofReasons further identified and explained the need and appropriate degree of regulation for diesel exhaust particulatematter that was earlier addressed in the diesel exhaust particulate matter risk reduction plan required by Health and Safety Code section 39665(a); WHEREAS, the Initial Statementof Reasons further discussed, to the extent data could reasonably be made available, the factors specified in Health and Safety Code section 39665(b) in adopting the diesel exhaust particulate matter risk reduction plan, including: estimates of emissions, exposure, and potential cancer risk clue to the operation ofdiesel-fueled engines associated with TRUs and TRU generator sets, feasible control options, potential environmental impacts, cost of compliancefor private and State and local public agency facilities frequented by TRUs and TRU generator sets and/oroperators ofTRUs and TRU generator sets, and cost impacts forAir Resources Board implementation ofthe proposed Airborne Toxic Control Measure; WHEREAS, as part ofthe Initial Statement of Reasons, staffperformed a risk assessmenton a generic (i.e., example) facility, such as a refrigerated warehouse distribution center, assuming a total of300 hours ofTRU and TRU generator set operation perweek and a diesel exhaust particulate matter emission rate of0.7 grams per brake horsepower-hour and, as a result of. modeling analyses, estimate the potential cancer risk would be in the 10 to 100 per million range between 250 and 1,000 meters (800 to 3,300 feet) from theResolution 03-37 4
facility and would decrease to less than 1 0 per million atapproximately 1,100 meters (3,600 feet)from thefacility; WHEREAS, concepts and draft proposals regarding the proposed Airborne Toxic Control Measurewere discussed attwo public consultation meetings, nine workgroup meetings, and five public workshops; WHEREAS, in accordance with the authority setforth above, staffevaluated various control options, including: Reliance on existing State off-road engine and existing and proposed United States Environmental. Protection Agency nonroad engine emission

· standards withno additional control of in-use TRU and TRU generator set

engines; and Requiring refrigerated transport units atfacilities to operate on electric power ratherthan on diesel-fueled engines; WHEREAS, in accordance with the above authority, the staff has now proposed adoption oftitle 13, California Code of Regulations (CCR), section 2022 and concluded thatthe proposed requirements setforth therein would reduce diesel exhaust particulate matter emissions and associated cancerand otheradverse health effects statewide and significantly reduce such emissions and adverse health effects nearCalifornia facilities where TRUs and TRU generator sets operate: In-useTRU and TRU generator set engine performance standards based on engine horsepower rating to be phased-in starting in 2008 and continuing through 2020 with an early compliance incentive provided for operators with 2002 and olderTRU and TRU generatorset engines; · An initial operator report, to be updated as necessary, with information about the TRUs and TRU generator sets operated in California; and
A one-time reportfrom facilities with 20or more loading dock doors serving refrigerated storage areas to enable staffto evaluate the overall effectiveness ofthe regulation in reducing diesel exhaust particulate matterconcentrations nearfacilities where numerous TRUs and TRU generator sets operate; WHEREAS, staffestimated the overall cost effectiveness associated with compliance with the proposed Airborne Toxic Control Measure to range from $1 0 to $20 per pound ofdiesel exhaust particulate matter reduced; WHEREAS, no significant compliance costs are expected forfederal, State, or local public agencies because few ofthese agencies are subject to the proposed Airborne Toxic Control Measure and because those that are subjectoperate, or control the operation of, relatively fewTRUs orTRU generator sets;

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WHEREAS, the initial costs associated with implementation and enforcement of the proposed Airborne Toxic Control Measure are expected to be absorbed into existing Air Res,ources Board budgets and additional staffing is notexpected to be required; · WHEREAS, compliance with the proposed Airborne Toxic Control Measure is expected to reduce exposure to, and associated additional cancer and other adverse health risk from, diesel exhaust particulate matter; WHEREAS, the California Environmental Quality Act (CEQA), section 21080.5 of the Public Resources Code and Board regulations attitle 17, CCR, section 60006 require that no projectthat may have significant adverse environmental impacts be adopted as originally proposed iffeasible alternatives or mitigation measures are available to reduce or eliminate such impacts; WHEREAS, a public hearing and other administrative proceedings have been held in accordance with the provisions ofchapter 

### 3.5 (commencing with section 11340), part 1, division 3, title 2 ofthe Government Code; WHEREAS, in consideration of the Initial Statementof Reasons. written comments, and publictestimony it has received, the Board finds that: Existing federal, State, and local regulations and proposed United States Environmental Protection AgencyTier4 emission standards for new nonroad engines do notsufficiently protect the public health fromdiesel exhaust particulate matter associatedwith in-useTRU and TRU generator set engine operation;
The proposed Airborne Toxic ControlMeasure is expected to provide flexibility in choice ofcompliance options, control emissions, reduce exposure, and protect health more effectivelythan any other possible alternative evaluated in accordance with the authority vested underthe Health and Safety Code by requiring the following:
In-useTRU and TRU generatorset engine performance standards based·on engine horsepower rating to be phased-in starting in 2008 and continuing through 2020with incentive for earty compliance,
An initial operator report, to 

### be updated as necessary, with information aboutthe TRUs and TRU generator sets operated in California; and
A one-time reportfrom facilities with 20 or more loading dockdoors serving refrigerated storage areas to enable staffto evaluate the overall effectiveness ofthe regulation in reducing diesel exhaust particulate matter concentrations nearfacilities where numerousTRUs and TRU generator sets operate;Resolution 03-37 

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The proposed Airborne Toxic Control Measurewould reduce exposureto potential diesel exhaust particulate matter emissions and associated cancerand otheradverse health effects in all communities in which TRU and TRU generatorset engines operate; The ecdnomic impacts ofthe proposed Airborne Toxic Control Measure have been analyzed as required by California law, and the conclusions and supporting documentationforthis analysis are set forth inthe Initial Statement of Reasons;
The benefits ofthe proposed Airborne Toxic Control Measureto public health and the environmentjustifythe costs ofcompliance, implementation, and enforcement; and No alternatives considered orthat have otherwise. been identified and brought to the attention ofthe Air Resources Board would be more effective at carrying outthe purpose forwhich the Airborne Toxic Control Measure is proposed, orwould be as effective and less burdensometo the affected private businesses and public agencies than the proposed Airborne Toxic Control Measure; WHEREAS, the Board furtherfinds, in accordance with Health and Safety Code section 39650(e), that while absolute and undisputed scientific evidence may not be available to determine the exact risk from diesel exhaust particulate matter from diesel-fueled engines associated with TRUs and TRU generator sets, it is necessaryto take action to protect public health and thatthe maximum feasible · emission reductions permitted by law should be obtained; WHEREAS, pursuant to Health and Safety Code sections 39666 and 39667, the Board furtherfinds that the proposed in-use emission standards adopted herein are based on utilization ofthe best available control technologies identified within the time scheduled for compliance; WHEREAS, pursuantto Health and Safety Code section 43013(b), the Board furtherfinds thatthe in-use emission standards adopted herein.arefound to be necessary, cost-effective, and technologically feasible within the time provided for compliance; WHEREAS, the Board further finds based on its independentjudgmentand analysis ofthe entire record before itthat:.
With respectto the requirements ofCEQA, the proposed Airborne Toxic Control Measure setforth atsection 2022, title 13, CCR, will not have a significanteffect on the environment, butwill result in the reduction of

·diesel exhaust particulate matter;Resolution 03-37 

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Having identified thatthe proposed Airborne Toxic Control Measurewill notadversely affectthe environment, but rather provide environmental benefits that are achieved both statewide and locally, the proposed regulation should notadversely impact any community in the State, especially low-income or minority communities;
The reporting requirements applicable to businesses undersection 2022, title 13, CCR, are necessaryfor the health, safety, and welfare ofthe people ofthe State. NOW, THEREFORE, BE IT RESOLVED that the Board hereby approves for adoption new division 3, chapter 3, article 4, section 2022, title 13, California Code of Regulations, as setforth in Attachment A and modified by Attachment B hereto;
BE IT FURTHER RESOLVED thatthe Board directs the Executive Officer to incorporate into the approved regulations the modifications setforth in Attachment B, with such other conforming modifications as may be appropriate, and then to adoptthe amendments and new regulation, 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 regarding the modifications as may be submitted during this period, shall make modification as may be appropriate in light ofthe comments received, and shall presentthe regulations to the Board for further consideration 

### ifthe Executive Officer determines thatthis is warranted;
BE IT FURTHER RESOLVED thatthe Board directs the Executive Officerto explore.the possibility ofentering into pilot-demonstration projects on an ad hoc basis with interested stakeholders on application ofadvanced technologies; such projects shall beforthe purpose ofdetermining whether such technologies will provide equal orgreater health and welfare benefits in a cost-effective and technologically feasible manner. Such programs should be of limited duration and scope asdetermined bythe Executive Officer. Ifdetermined that pilotdemonstration projects are appropriate, the Executive shall also consider whether 15-day changes to the regulation are necessaryfortheir implementation.
BE IT FURTHER RESOLVED that the Board hereby determinesthat pursuantto Title II, section 209(e)(2) ofthefederal Clean AirAct, as amended in 1990,that the emission standards and other requirements related to the control of emissions adopted as part ofthis Airborne Toxic Control Measure are, in the aggregate, at least as protective of public health and welfare as applicable federal standards, that California needsthe adopted standards to meet compelling and extraordinary conditions, and thatthe adopted standards and accompanying enforcement procedures are consistentwith the provisions of section 209;Resolution 03-37 

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BE IT FURTHER RESOLVED that the Board directs the Air Resources Board staffto:
Pursuantto the determination setforth above, to file a requestfor authorization from the United States Environmental Protection Agency pursuant to section 209(e)(2) ofTitle II ofthe federal Clean AirAct as amended in 1990; Consider, ifnecessary, amending the proposed in-use performance standards for TRUs to align with the final U.S. EPA "Tier4" emission standards for new, compression ignited TRU engines; in considering whether alignment is appropriate, staff shall be cognizant ofthe continuing risks associated with diesel PM emissions and make every effortto ensure that the emission reductions forecasted forthis rulemaking be achieved.in the time frame provided;
Educate affected TRU and TRU generator set operators and facilities where TRUs and TRU generator sets operate about the requirements of the regulation; Develop an identification 

### (1.0.) numbering system and database to track compliance ofTRUs and TRU generator sets that operate in California;
Review largefacility reports (submission required in 2005) to determine if the regulation sufficiently reduces diesel exhaust particulate matter concentrations nearfacilities where numerousTRUs and TRU generator sets operate; Closely monitor progress and development ofemission control technology as it applies to TRUs and TRU generator set emission standards setforth inthis Airborne Toxic Control Measure and report backtothe Board in 2007 and 2009 on staffs conclusions regarding the feasibility ofthe standards inthetime provided in the regulation forcompliance; Workwith the United States Environmental Protection Agencyto identify a diesel exhaust particulate matter emission standard for new nonroad engines that are lessthan 25 horsepower; Work with TRU, TRU generator set, and engine manufacturers to develop a listto cross reference TRU and TRU generatorset makes, models, and model years with Executive Order numbers that setforth engine exhaust emission certification levels and deterioration rates for specificTRU and TRU generator set engine makes, models, and model years; andResolution 03-37 

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Ensure compliance with the regulation through roadside TRU and TRU generator set inspections in conjunction with the Heavy-DutyVehicle Inspection Program. facility audits, and other enforcement actions as necessary.

I hereby certifythatthe above is a true and correct copy of Resolution 03-37, as adopted bythe Air Resources Board.

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# • Resolution 03-37 February26, 2004 Identification ofAttachments to the Board Resolution 

### Attachment A:· Proposed Airborne Toxic Control Measure for In-Use Diesel-Fueled Transport Refrigeration Units (TRU) and TRU Generator Sets, and Facilities Where TRUs Operate (division 3, chapter 3, article 4, section 2022, title 13, California Code of Regulations) as set forth in Appendix A to the Initial Statement of Reasons, release.d October 24, 2003. Attachment B: Staff's Suggested Modifications to the Original Proposal