California Construction Trucking Association (CCTA)

A Four-Year Delay of the Off-Road Rule is Forged by CARB and Contractors

With the long-awaited emissions inventory revisions nearly complete, CARB staff on September 29 released major changes that will remove most compliance obligations for truck rule fleets during 2011 to 2013 and will relieve off-road fleets until 2014. While stopping short of the repeal and five-year delay requested by many industry players, CARB seems intent on maintaining both rules, defending its public health mission and federal requirement to meet the State Implementation Plan commitments.

Staff has not proposed changes that exempt or eliminate the small fleet requirements but have relented on the 2014 ban of 2003 and older engines and will allow small fleets to delay replacement until 2020 if a diesel particulate filter is purchased by 2014 (see “Small Fleets” on opposite page). The paragraphs below will describe the process and content of the proposed changes.

Process: The proposed language for the amendments to both rules is posted in the “What’s New” section on the CARB website at http://www.arb.ca.gov/msprog/onrdiesel/onrdiesel.htm. CARB will publish a staff report on October 20, 2010, and then the formal comment period on the changes will begin. The Board hearing is now schedule for December 16 & 17, 2010 in Sacramento.

Content (Off-road): The proposed changes to the In-Use Off-road Diesel Vehicle Regulation actually recognizes contractors’ claims that the recession has “negatively affected” employment and revenue in the construction sector, as well as other industries affected by the regulation. Some say it’s a depression within the construction industry. Many, if not all, fleets subject to the regulation have been affected by the worsening recession and are in need of relief, according to CARB staff.

With prodding from experts outside of government, CARB staff now believes that past and future emissions from off-road vehicles are significantly lower than previously estimated. Based on a combination of new, better data and significant reductions in equipment activity resulting from the current recession here (now in its third year), the off-road construction related diesel emissions are substantially lower than orgionally estimated by CARB staff. The proposed changes to the regulations include:

• allow compliance without any required retrofits,
• simplify the regulation by eliminating multiple fleet averaging options, and
• lower the costs of the regulation.

According to the Associated General Contractors of America (who spearheaded the industry response), the proposed changes, which will need approval from the CARB Board in December, provide needed relief for the struggling construction industry while still lowering emissions below the levels that the Board originally sought to achieve.

The changes call for CARB to delay its emissions standards for off-road diesel equipment until 2014, to ease the annual burden employers have to bear, and to give contractors greater flexibility in determining how to comply.  CARB also will give contractors credit for the efforts they have already made to reduce emissions and reward contractors for voluntarily reducing emissions before 2014. However, the proposed changes would also extend the rule further into the future.

The delay of the requirements between 2010 and 2017 translates into emission reductions that CARB says are needed to meet the state’s commitments to meet federal SIP requirements. The major proposed changes to the Off-Road Rule are:

1. Delay start of requirements by 4 years for all large fleets; most fleets do nothing until 2017.
2. Allow turnover instead of retrofitting with diesel filters so that no fleet is ever forced to apply a retrofit filter.
3. Reduce the annual requirements to clean up engines to no more than 5% to 10% of a fleet’s horsepower (reduced from 28% to 30%).
4. Extend double credit for early retrofits.
5. Reduce peak year costs by removing the 2013 ‘Balloon Year’ (fleets had 180% of the requirements of other years).
6. Increase low use threshold from 100 to 150 hours annually.
7. Remove 2012 requirements for fleets that were in compliance with 2010 requirements (about 2/3 of large fleets), benefiting fleets that were proactive.
8. Provide simpler compliance option for the smallest fleets; those with less than 500 horsepower can phase out Tier 0/1 beginning 2017, rather than deal with fleet averages.
9. Achieve more NOx benefits in later years; lower NOx targets from 2017 to 2022, requiring more Interim Tier 4 and Tier 4 engines

Content (Truck & Bus): The Rule is proposed to set a bar at 26,000 lbs. gross vehicle weight rating (GVWR). The amended regulation would exempt lighter diesel trucks from meeting particulate matter (PM) filter requirements and would delay the first replacements for all trucks until 2015. This pushing out of the N0x requirement will lower the early costs for many fleets when compared to the existing rule.  No engine less than 20 years old would be replaced until January 1, 2020 for these Class 4 to 6 trucks (i.e. a GVWR more than 14,000 lbs and less than 26,001 lbs).  These trucks do not count toward the three-truck limit for a “small fleet” in the existing rule, and there are no requirements until 2015. Trucks must be replaced when they are 20 years old, starting in 2015 until 2020, and all must have 2010 engines by 2023.

“Large Fleet” BACT Schedule: For Class 7 and 8 trucks (i.e. with a GVWR more than 26,000 lbs.), there are two options for fleets of four or more trucks in these weight classes. The first is similar to the “BACT Schedule” in the existing rule, which really is a ban by engine model year. The schedule requires PM filters installed in 2012 to 2014 on 1998 to 2006 model year engines. Engines twenty or more years old are banned from 2015 to 2020, and all trucks must have 2010 engines by 2023. The new (Table-1) across provides the date by which a retrofit is required in order for that engine to continue to be legal under the rule.

“Large Fleet” Phase-in Option: The phase-in option for fleets with four or more vehicles with a GVWR greater than 26,000 lbs provides fleets with an alternative compliance option to phase in the requirements from January 1, 2012 to January 1, 2016. This is similar to the “percent limits” options in the existing rule. To utilize this option, fleets must report their fleet information by January 31, 2012.
With this option, fleets must comply with PM BACT by bringing 30% of the fleet into compliance by January 1, 2012; 60% of the fleet by Jan. 1, 2013; and 90% of the fleet by Jan. 1, 2014. By January 1, 2016, the remaining 10% of the fleet must comply with the BACT compliance schedule. Fleets utilizing this provision must report fleet informing including all vehicles. This provision expires on January 1, 2016.

“Small Fleet”: For the owner of one to three Class 7 and 8 trucks to take advantage of the small fleet provision, a report to CARB is required if that vehicle is required to install a PM filter before 2014, according to (Table-1) across. The bottom line is that if you are driving a vehicle that, according to the BACT compliance schedule, is supposed to be in compliance, and it’s not, you better have told CARB. If you are driving a 1993 truck in 2015, it better have a filter on it, and you better be able to prove you reported to CARB that you were utilizing the small fleet provision.

Small Fleet Reporting:

• Calendar year 2012: report if driving a ‘98 – ‘00 W/O a PM filter.
• Calendar year 2013: report if driving a ‘01 – ‘04 W/O a PM filter.
• Calendar year 2015: report if driving a 1993 or older (and it better have a PM filter to be legal).