The Truck and Bus regulation has been through a series of adoptions and revisions. Our previous summary was based on the changes posted by ARB on February 9, 2011. ARB released what we believe to be the final set of changes (at least for the time being) on May 19, 2011. Our summary is based on May 19, 2011 regulation text.
For additional details on the rule from ARB see:
www.arb.ca.gov/msprog/onrdiesel/onrdiesel.htm
The revised rule has separate requirements for private sector trucks used in non-agricultural operations, trucks used in agricultural operations, and school buses. Our focus is on private sector trucks used in non-agricultural operations.
Major rule requirements are summarized below. Be advised that this rule has become very complex and until the first fleets clear through the first compliance date (Jan 1, 2012) precise requirements will in many cases remain uncertain.
General
The rule applies to in-use diesel on-road vehicles with a GVWR or more than 14,000 pounds that are not already subject to another ARB in-use diesel control rule (for example, waste collection vehicles, public fleets, transit buses and drayage trucks). The basic intent of the rule is two-fold:
- In the near term, make truck owners install particulate matter vehicle diesel emission control systems (e.g., PM trap, PM filter, diesel particulate filter), or upgrade to newer trucks. Greater detail on PM VDECS can be found at www.arb.ca.gov/diesel/verdev/verdev.htm.
- In the longer term, make truck owners buy trucks with engines that meet 2010 engine emission standards.
The rule calls these two requirements Best Available Control Technology (BACT).
Trucks with GVWR of 14,001 to 26,000 lbs
The revised rule establishes different BACT compliance schedules for trucks with GVWRs of 14,001 to 26,000 lbs, and trucks larger than 26,000 lbs. Trucks with a GVWR of 14,001 to 26,000 lbs trucks must comply with the BACT schedule given below.
For example if you own a truck with a pre-1996 model year engine that truck engine must be equivalent to a 2010 model year engine by Jan 1, 2015. However, if you install a PM VDECS on that pre-1996 engine by Jan 1, 2014 you can defer the date when the truck must meet the 2010 engine standard until Jan 1, 2020. Also note that there are other compliance strategies. For example, if by Jan 1, 2015 you replaced the pre-1996 truck with one that has 2004 model year engine you would not have to do anything to that truck until Jan 1, 2021 at which time is would have to meet the 2010 engine emissions standard.
NOTE: If all trucks with a GVWR of 14,001 to 26,000 lbs are retrofit with a PM VDECS or meet 2007 emission standards by Jan 1, 2014 those trucks would not be subject to the 2010 engine emission standard until Jan 1, 2023.
Trucks with GVWR of more than 26,000 lbs
Trucks with a GVWR of more than 26,000 lbs have three compliance options:
Model Year BACT for trucks with GVWR more than 26,000 lbs
This option is similar to the one for trucks with GVWR of 26,000 lbs or less. The requirements are provided in the table below.
For example if you own a truck with a 1996-1999 model year engine and you use this compliance option that truck engine would have to be retrofit with a PM VDECS by Jan 1, 2012; and then be 2010 emissions equivalent by Jan 1, 2020.
As another example, if you own a truck with a pre-1994 engine it would have to be 2010 emissions equivalent by Jan 1, 2015. However, if you installed a PM VDECS by Jan 1, 2014 that engine would not have to be 2010 emission equivalent until Jan 1, 2020.
Again note that you could also defer when you have to comply by replacing a truck with one model year engine with another with a different model year engine. For example, if you replace a truck with 1996 model year engine with one that has pre-1994 engine, before Jan 1, 2012, then that truck with the pre-1994 engine would not have meet the 2010 engine standard until Jan 1, 2015; and if that truck was retrofit with a PM VDECS by Jan 1, 2014 that truck would not be subject to the 2010 standard until Jan 1, 2020.
Rule text provides another compliance option under the Model Year BACT option. Instead of meeting PM BACT as indicated in Table 2 a fleet could comply with the PM BACT compliance schedule given in Table 3, below.
We are unclear how this option provides any benefits.
Model Year NOx BACT and Percentage-based PM BACT for trucks with GVWR more than 26,000 lbs
As an alternative to Model Year PM BACT owners of trucks with a GVWR of more than 26,000 lbs could comply with the following BACT schedules.
As can be seen the primary difference is that under Percentage-based PM BACT the dates when the trucks must comply with PM BACT is based on the percentage of one's fleet rather than the model year of the engine. In addition there are number of credit and deferred compliance options available and limited to compliance path, which are explained below.
Credit for Early VDECS Installs
Fleets that use the Percentage-based PM BACT compliance path and retrofit a truck with a GWVR of more than 14,000 lbs with a qualifying PM VDECS by July 1, 2011 can treat another truck with a GVWR of more than 26,000 lbs as compliant until Jan 1, 2017. The rule text seems to indicate that any retrofit that was state funded (for example, the Carl Moyer Program) would be ineligible for this credit unless the funding contract for that project expired. A fleet may also receive the same credit if the highest level VDECS is ordered and paid for by May 1, 2010, and installed by August 1, 2011. [Note that because the May 1 deadline for ordering a VDECS occurred before the final rule was released we have requested ARB move the deadline when VDECS must be installed to later in the year.]
Relief for fleets that have downsized
Fleets that select Percentage-based PM BACT compliance path are eligible for credit if the number of trucks in a compliance year is less than the number of trucks owned on October 1, 2006. It allows fleets to reduce their PM BACT obligation by deducting the percentage reduction in the number of trucks a fleet owned between October 1, 2006 and Jan 1 of a compliance year.
Exchange of excess credits between the Truck and Bus and Off-Road regulations
The revised rule allows fleet owners to use excess Truck and Bus PM BACT credits to meet Off-Road BACT requirements, and excess BACT credits derived from off-road PM VDECS' to meet Truck and Bus PM BACT. This option is only available to on-road fleets that use the Percentage-based BACT option. The ability to exchange credits expires starting with the January 1, 2017 compliance date.
Regulatory text is less than entirely clear exactly how the exchange would work. We have sought clarification from ARB and if anything changes we will let you know.
In general we believe the new credit exchange will be of limited value. Let's look at the use of excess Truck and Bus regulation credits to meet Off-Road BACT obligations first.
We have reproduced the Percentage-Based BACT compliance schedule below.
As indicated 30% of the fleet of trucks larger than 26,000 lbs GVWR is required to meet PM BACT by Jan 1, 2012. By Jan 1, 2014 90% of the fleet is required to meet PM BACT. Jan 1, 2014 is also the first compliance date under the Off-Road Rule for off-road fleets. That means that only 10% of the truck fleet could qualify for excess credit that could be used to meet off-road BACT obligations. Also note that by Jan 1, 2016 100% of the trucks must be retrofit. That means the maximum length of the credit would one or two years, depending on whether the early truck compliance action was taken 2014 or 2015.
Based on our experience pricing both on- and off-road PM VDECS retrofits, on-road PM VDECS tend to cost less than off-road PM VDECS for the same hp. So while the amount of excess credit would be limited, complying with Truck and Bus PM BACT early could defer some costs one or two years.
Looking at it the other way, using Off-Road PM VDECS credits to meet Truck and Bus PM BACT obligations there is much greater potential for using excess off-road PM VDECS compliance to meet Truck and Bus PM BACT. The first compliance date for large off-road fleets is 1/1/2014 and by 2016 only 20.8% of a large fleet would be subject to BACT. And the first compliance dates for medium fleets is not until 2017 and small fleets until 2019. So using excess Off-Road PM VDECS credits could defer the date a truck has to be compliant with PM BACT for up to four years (from 2012 to 2016).
However, the relative cost of PM VDECS may negate this value. As mentioned, off-road PM VDECS tend to cost more than on-road PM VDECS for the same hp.
That being said there are some unique situations where such a credit could be of value.
- Passive VDECS typically cost much less than an active PM VDECS. If an on-road truck was limited to an active system, but an off-road piece of equipment could use a passive PM VDECS, then it could make financial sense to retrofit the off-road piece of equipment early.
- If a fleet owner plans to replace a truck in two or three years and keep an off-road piece of equipment for a long time, that owner may want to retrofit that off-road equipment early so he would not have to retrofit that truck.
Which compliance path is best (Model-Year or Percentage-Based) depends on fleet and company specific information.
Regardless if the Model Year or Percentage-based BACT is used, if all trucks are retrofit with a PM VDECS by Jan 1, 2014; or meet 2007 engine emission standards by that date, those trucks would not be subject to the 2010 engine emission standard BACT requirements until Jan 1, 2023.
Small fleets with three or fewer trucks with GVWR more than 14,000 lbs
The rule provides a deferred compliance option for fleets with three or fewer trucks with a GVWR of more than 14,001 lbs.
All trucks larger than 26,000 lbs GVWR that take advantage of this deferred compliance option would be subject to the 2010 engine emissions standards compliance schedule given in Table 2 starting Jan. 1, 2020.
For example, say you have three trucks. Two are between 14,001 lbs to 26,000 lbs and one is larger than 26,000 lbs.
Your fleet size is based on trucks larger than 14,000 lbs, so you have three trucks. However, the special conditions
apply only to trucks larger than 26000 lbs. In this example, you have one truck larger than 26,000 lbs.
So that truck would have to meet BACT by Jan 1, 2014.
Exemptions and Deferred Compliance
Low-use exemption
Vehicles without PTOs that run less than 1,000 miles per year are exempt from compliance requirements, but are subject to record keeping and reporting requirements.
Vehicles with PTOs that run less than 1,000 miles per year and 100 hours per year are exempt from compliance requirements, but are subject to record keeping and reporting requirements.
Delayed deadlines for trucks used in construction activities
The revised regulation potentially defers the date when low use construction trucks must meet the regulation's PM BACT compliance requirements. A low use construction truck is defined as:
- A 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
- 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.
A company can have up to ten trucks that qualify for the deferred compliance option.
The deferred compliance schedule is given below:
PM BACT is defined as a PM VDECS or engine that meets 2007 or newer emission standards. (Note: VDECS stands for vehicle diesel emission control system, which is a retrofit device verified by ARB to reduce PM and/or NOx. See www.arb.ca.gov/diesel/verdev/vt/cvt.htm.)
An owner of a single truck that qualifies as low use construction would have until Jan 1, 2016 to meet PM BACT.
The regulation allows a fleet owner to replace a truck designated as a low use construction truck with another truck and maintain the deferred compliance status for that truck provided the new truck has a 1996 or newer engine.
The deferred compliance option for low use construction trucks may or may not help depending on your specific situation.
Exemption for trucks with GVWR of more than 26,000 lbs that operate entirely in NOx Exempt Areas
The rule text covering this exemption is really confusing. Here is our read. If you operate a truck entirely in a NOx exempt area, that truck is exempt from having to meet the 2010 emission equivalent engine standard provided it is retrofit with a PM VDECS by the date it would have been subject to the 2010 engine standard. Alternatively, trucks with a GVWR of more than 26,000 lbs could meet PM BACT under the following compliance schedule.
NOx exempt areas are defined as the following counties: Alpine,Colusa, Del Norte, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Monterey, Plumas, San Benito, San Luis Obispo, Santa Barbara, Santa Cruz, Shasta, Sierra, Siskiyou, Northern Sonoma County, Trinity, Tehama, and Yuba.
There are special labeling requirements for NOx exempt trucks.
Adding or removing a vehicle from a fleet
Regulation text that describes requirements when adding a vehicle to or removing a vehicle from an existing fleet is confusing. In general if you add a vehicle to or remove a vehicle from your fleet your fleet must remain in compliance after the vehicle change.
If you buy or sell a truck you must submit a report to ARB within 30 days that shows, if you are using the Percentage-based PM BACT compliance path for trucks larger than 26,000 lbs GVWR, or any of the compliance extensions given above, that your fleet would remain in compliance on the preceding compliance date.
If you add a truck with a 2007 emissions compliant engine that truck need not be reported unless:
If a fleet change eliminates any extensions or exemptions you would be required to notify ARB of the change within 30 days.
Reporting
The reporting requirements governing who must report what and when are confusing and ARB needs to provide clarification. In general reporting is not required only when the following compliance options are used without any credits or exemptions:
- Model Year BACT more than 26,000 lbs (Table 2)
- Trucks with GVWR of 14,001 to 26,000 lbs (Table 1)
The use of all other compliance options, credits (e.g., early PM VDECS installs), and exemptions are subject to reporting requirements. The first reporting deadline is in most cases Jan 31, 2012.