Diesel Rules Compliance Update. Presented by Sean Edgar, Project Manager

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1 Diesel Rules Compliance Update Presented by Sean Edgar, Project Manager December 7, 2011

2 Goals for Today The Final Offroad and Onroad Rules How to Report and know what the Rules require going forward Suggest Best Practices Answer Your Questions

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4 CARB Enforcement Summary

5 CARB Enforcement Methods Health and Safety Code DMV Holds CHP Impound Authority

6 CARB s Diesel Timeline ( ) 2023)

7 Offroad Rule Reporting & Compliance Schedules December 2010 Changes Final Language Expected by End of November

8 CARB Dec 2010 Hearing

9 CARB Off-Road Regulations: Off-road Diesel Vehicles Regulatory Definition: diesel fueled or alternative diesel fueled off-road compression ignition vehicle engine with maximum power of 25 horsepower (hp) or greater that is used to provide motive power in a workover rig or to provide motive power in any other motor vehicle that (1) cannot be registered and driven safely on-road or was not designed to be driven on-road, and (2) is not an implement of husbandry or recreational off-highway vehicle. What s out: vehicles that were designed to be driven on-road, and have on-road engines are considered on-road and are specifically excluded from this regulation.

10 Off-road Rule Overview 120,000 diesel engines in the state that are in self-propelled equipment that is 25hp or greater implementation schedule Size: Large, medium and small fleets have staggered schedules for compliance

11 What are Offroad Tiered Engines?

12 Offroad Compliance Process Prior to the December 2010 hearing, 20% of the horsepower per year required particulate matter Now a four year delay takes the first large compliance date to January 1, 2014 There is still an early action double filter credit The annual compliance percentage will drop to 5-10% per year from 2014 to 2028 Changes reported to CARB within 30 days, an annual certification and labeling are ongoing Extra EIN by January 1, 2013

13 Off Road Compliance Planning New calculator by CARB Staff due in the Spring A four year delay from the original timeline for all fleets sizes Fleets now have only one fleet average target to meet based on their NOx emissions; If they cannot meet the fleet average target, they are required to clean up 5 to 10 percent of their horsepower annually, as opposed to the previous requirement of 28 to 30 percent. Making exhaust retrofits no longer mandatory. Raising the low use threshold to 200 hours per year instead of 100 hours.

14 Off Road : Reporting? Initial report due in 2009 Amnesty through end of 2010 better to report late than never Additions or deletions to fleet is require within 30 days of a change Other than that, fleets need only update their reporting information annually on March 1st in the years indicated below: Large fleets (those with 5,000+ hp) must report annually each year from 2012 to 2023; Medium fleets (those with 2,501-5,000 hp) must report annually each year from 2016 to 2023; Small fleets (those with up to 2,500 hp) must report annually each year from 2018 to 2028.

15 Off Road : What is your Compliance Strategy? Option 1: Fleet Average (Calculator when posted), or Option 2: Turnover, N0x or PM VDECS The required turnover percentages of fleet horsepower to turn over, apply NOx VDECS, or apply the highest level PM VDECS Large fleets 2014: 4.8 percent 2015 to 2017: 8 percent 2018 to 2023: 10 percent Medium fleets 2017: 8 percent 2018 to 2023: 10 percent Small fleets 2019 to 2028: 10 percent

16 Safety of Retrofits The CARB Offroad rule has provisions for a discretionary review by the CARB Executive Officer relating to safety. The Petition (Petition File No. 507, attached) in this case was brought by Associated General Contractors of California and the Operating Engineers Local 3 The OSHA OCCUPATIONAL SAFETY AND HEALTH STANDARDS BOARD, the Board amended Title 8, Construction Safety Orders, Sections 1590(d), 1591(b), and 1597, regarding exhaust and modifications of equipment. The latest status the Board will take action at a future date Even if retrofits are not mandated, this is still an area of concern for industry

17 Offroad Rule Wrap Up Step 1 Inspection and Reporting: A current and accurate DOORS account is required. Large Fleets can expect to file the annual certification Step 2 Engineering evaluations, budgeting and procurement must occur prior to deadlines Step 3 Compliance monitoring and reporting is required Clean Fleets is providing support services

18 Truck & Bus Rule Reporting & Compliance Schedules December 2010 Changes Final Language Expected by End of November

19 Overview Contractors received reduced requirements when CARB slowed this rule twelve months ago Reporting by the end of January 2012 is required to take advantage of the extension for construction trucks

20 Compliance Requirement: Supply Chain Issue The vehicle owner shall comply with all applicable requirements and compliance schedules set forth in this regulation. Any in-state or out-of-state motor carrier, California broker, or any California resident who operates or directs the operation of any vehicle subject to this regulation shall verify that each hired or dispatched vehicle is in compliance with the regulation and comply with the record keeping requirements Compliance may be accomplished by keeping at the business location, a copy of the Certificate of Reported Compliance with the In-Use On-Road Diesel Vehicle Regulation for each fleet, or in the vehicle.

21 Compliance Best Practices 1. Collect truck and engine data and report in the next 50 days 2. Every truck should have a copy of the Certificate of Reported Compliance with the In-Use On-Road Diesel Vehicle Regulation for each fleet owner in every vehicle 3. Because any California resident who operates or directs the operation shall verify any time you call for trucking then you should obtain the truck owners Certificate 4. Ensure accurate mileage tracking is in place by December 31, Keep tuned to the AGC website and Monday Morning Quarterback

22 Low Mileage Construction Truck TIME EXTENSION from Final Rule Language means a vehicle that meets the definition in (A) or (B) as follows: (A) A dump truck with a GVWR greater than 26,000 lbs that operates less than 20,000 miles per calendar year and is designed to transport construction materials such as dirt, asphalt, rock or construction debris including a transfer truck, or a tractor trailer combination used exclusively to pull bottom dump, end dump or side dump trailers, or (B) A truck with a GVWR greater than 26,000 lbs that travels less than 15,000 miles per calendar year and is a concrete mixer truck, truck with a concrete placing boom, a water tank truck, a single engine crane with a load rating of 35 tons or more, a tractor that exclusively pulls a low-boy trailer, or a truck owned by a company that holds a valid license issued by the California Contractors State License Board.

23 Low Mileage Construction Truck Key Points 1. Requires a report (aka registration ) to CARB by 1/31/2012 (Just as any other credit, time extension, phase-in for fleets of four or more) 2. Requires ANNUAL reporting and documentation of mileage if the mileage limit doesn t fit then I don t recommend selecting this option. Mileage documentation is subject to CARB audit. 3. For a one truck owner this extension expires on 1/1/2016 PROVIDED ALL REPORTING IS ACCURATE, AUDITABLE AND DONE ON TIME 4. For fleets of four or more there is a cap of ten trucks in this category 5. This is a phase-out program for engines that ARE NOT LIKELY to be retrofitted successfully (33% at the end of 2013, 2014 and Mileage limits are not likely to move from the 15,000-20,000

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25 Low Mileage Construction Truck for the Phase-in Fleets of Four or More Trucks 33%/year

26 Gross Vehicle Weight Rating (GVWR) GVWR means gross vehicle weight rating which is the weight specified by the manufacturer as the maximum loaded weight of a single vehicle. For vocational trucks, the manufacturer is the body builder, or company that completed the vehicle. Although many cab and chassis manufacturers may have installed a label with an incomplete GVWR, that is not the weight for the purpose of determining the On-Road Rule compliance requirements. The GVWR is not necessarily the same as the weight fees paid to the DMV for registered trucks. Diligence is required to confirm the GVWR of vehicles is known

27 Weight Classes

28 Class 4 to 6 in Any Fleet Size

29 Class 7-8 Compliance by Model Year

30 Class 7-8 Second Possible Compliance by Model Year

31 Class 7-8 Phase-in

32 Who is the Fleet Owner? Fleet Owner means either the person registered as the owner or lessee of a vehicle by the California Department of Motor Vehicles (DMV), or its equivalent in another state, province, or country; as evidenced on the vehicle registration document carried in the vehicle. (B) For vehicles that are rented or leased: 1. The owner shall be presumed to be the rental or leasing entity for purposes of compliance with section 2025(e), if: a. The rental or lease agreement for the vehicle is for a period of less than one year; or b. The rental or lease agreement for the vehicle is for a period of one year or longer, unless the terms of the rental or lease agreement or other equally reliable evidence identifies the party responsible for compliance with state laws for the vehicle to be the renting operator or lessee of the vehicle. 2. For purpose of enforcement, if at the time that the vehicle is inspected and cited for noncompliance with this regulation and neither the operator of the vehicle nor the rental or leasing entity can produce does not possess evidence of the party responsible for compliance with state laws, the owner shall be presumed to be both the rental or leasing entity and the renting operator or lessees of the vehicle.

33 Recordkeeping The owner shall provide records to an agent or employee of the ARB within five business days upon request. (2) The owner of a fleet subject to the reporting requirements of section 2025(s) shall maintain copies of the information reported under section 2025(s), as well as the records described in sections 2025(t)(4) through (11) below. (3) Motor Carrier or Broker (A) Bills of lading and other documentation identifying the motor carrier or broker who hired or dispatched the vehicle and the vehicle dispatched.

34 CleanFleets Services

35 CleanFleets Services

36 CleanFleets Services

37 Meeting Wrap Up Step 1 Inspection: A current and accurate inventory with full engine details Step 2 Report on time by 1/31/2012 Step 3 Procurement must occur at least 4 months in advance of a compliance date Step 4 Compliance monitoring and reporting is required Clean Fleets is providing support services

38 QUESTIONS? Sean Edgar CleanFleets.net

39 Open Discussion Q & A Open Discussion Questions and Comments Regarding Offroad Rule Compliance