Introduction
In late July 2007 California Air Resources Board (ARB) adopted a rule that requires owners of diesel powered off-road mobile equipment such as scrapers, loaders, and forklifts meet stringent emission control requirements.
This is very brief overview of a very complex rule. We prepared a more in depth summary, which you can obtain by simply emailing us a request. Please include your company and contact information in your request.
For the most recent status released by ARB, see:
http://www.arb.ca.gov/msprog/ordiesel/ordiesel.htm
Comments and suggestions are welcomed.
General
The rule applies to diesel powered off-road mobile equipment used in a wide range of different industries including construction, mining, freight distribution, rental, landfills, landscaping, government, airlines, etc. In general, the rule seeks to reduce oxides of nitrogen (NOx) and particulate matter (PM) over a number of years starting in 2010. The rule is structured by fleet size: large, medium and small. Medium sized fleets receive deferred compliance, and small fleets are exempt from NOx requirements and also get deferred compliance. The rule provides two basic compliance paths: fleet averaging and best available control technology (BACT).
Equipment Subject to Regulation
In general, the rule applies to off-road mobile equipment powered by diesel engines 25 hp or larger. Only engines that propel (move) equipment are subject to the rule.
Exemptions
The rule provides a fairly complex set of full or partial exemptions from rule requirements. Full exemptions are provided for:
- Diesel engines already regulated by another ARB in-use diesel control
- Equipment used less than 100 hours per year in California (subject to record keeping and reporting)
- Equipment use entirely for personal use
- Equipment used 100% in agriculture (if used more than 50% but less than 100% the equipment is exempt form compliance requirements, but would be subject to record keeping and reporting)
There are also partial exemptions. These include, but are not limited to:
- Equipment that operates only in regions that met the federal ambient ozone standard is exempt from NOx compliance requirements until 2017.
- Equipment less than 10 years old is exempt from NOx BACT for 10 years.
- Equipment less than 5 years old is exempt from PM BACT for 5 years.
- Equipment retrofit with vehicle diesel emission control system that reduces PM is exempt from NOx compliance requirements for six years.
Fleet Size
The rule requirements are based on fleet size. A fleet is defined as all the equipment a company owns and is used in the state of California. It also covers equipment that operates in California, but where the company is located outside of the state.
Fleet size is determined by summing the maximum rated net (flywheel) hp from every engine in your fleet that is subject to this rule. The fleet classifications are follows.
Initial Report Requirements
The first critical date was March 1, 2009. You were required to submit fleet data to ARB on your fleet as it existed on that date. The date the report was due to ARB varied by fleet size.
At the time this was written ARB said they are not fining people for late fleet submittals. But they said they are expanding their enforcement activities.
ARB has set up an online fleet reporting tool. See
http://www.arb.ca.gov/msprog/ordiesel/ordiesel.htm.
Click on "Reporting Forms."
Regulatory Requirements
The rule seeks to reduce oxides of nitrogen (NOx) and particulate matter (PM) and provides two basic compliance paths for each pollutant: fleet averages or best available control technology (BACT).
Fleet Average Emission Rates and Targets
Under fleet averaging you calculate: (a) a fleet average emission rate for your entire fleet, and then (b) a fleet average target emission rate, again for your entire fleet. You then compare the two. If your fleet average emission rate is equal to or less than your target rate you are in compliance for that target date. The target rates decline over time.
Large and medium fleets are subject to both NOx and PM requirements and must calculate fleet averages and targets for NOx and then again for PM. Small fleets are subject only to PM requirements.
ARB has provided a calculator that helps with the calculation of fleet average and target emission rates. That calculator can be found at
http://www.arb.ca.gov/msprog/ordiesel/ordiesel.htm.
Click on "Compliance Planning Tools." (Be very careful when you use the calculator. It does some things well, others not so well.)
Best Available Control Technology (BACT)
If you fail to meet a target rate for a compliance date you must meet BACT.
- NOx BACT is "Turnover." "Turnover" means to take certain actions on a percentage of your fleet. These actions include classifying a piece of equipment as low use (less than 100 hours per year), replacing a piece of equipment with newer equipment that has a lower emission engines, replacing a lower tier engine with a higher tier engine where the new engine must be Tier 2 or higher, rebuilding the engine to a more stringent emissions configuration again Tier 2 or higher, and/or applying a retrofit Vehicle Diesel Emission Control Systems (VDECS) verified by ARB to achieve NOx reductions.
- PM BACT is "Retrofit." Retrofit means to take certain actions on a percentage of your fleet. These actions include retrofitting your engine with a VDECS verified by ARB to reduce PM by at least 50%, and if there are multiple options, the highest efficiency device must be used; and retire Tier 0 equipment without replacement.
For list of verified VDECS see www.arb.ca.gov/diesel/verdev/vt/cvt.htm
The percentage of your fleet subject to Turnover or Retrofit varies by fleet size and is given below. The percentages apply to your fleet HP on the previous reporting date.
Compliance Dates
Compliance and reporting dates are provided below. As indicated, the dates vary by fleet size.
For each compliance date you are required to submit a statement of compliance along with any fleet changes and compliance actions taken between the previous and current compliance dates.
Other Provisions
- Rental Equipment: Equipment rented for one year or longer can be included in the fleet of either party. However, if you rent the equipment and want to include it in your fleet for the purposes of this rule, that arrangement must be specified in your rental agreement. Equipment rented for less than a year must be included in the rental company’s fleet.
- Low Use Equipment: The exemption for equipment
used less than 100 hours per year is complex and requires a more
detailed discussion.
There are two low use exemptions: "Designated"
and "Year-to-Year" low use.
"Designated" low use applies to equipment you do not
plan to use more than 100 hours per year. If you
designate a piece of equipment as "Designated" low use
you get turnover credit for that designation, but cannot use that
equipment more than 100 hours per year. If you do, it gets
treated as piece of equipment being added to your fleet, and is subject
to the rule requirements governing adding a new vehicle to your fleet.
"Year-to-Year" low use applies to equipment that was used
less than 100 hours during the 12 months preceding a compliance deadline,
but where you may use the equipment more than 100 hours in the future.
If you designate a piece of equipment as "Year-to-Year" low use,
that hp is deducted from your fleet hp at the end of the
12 month period, which could drop you to lower fleet size
category, and would reduce your turnover and retrofit
liability.
For example, if you have 7,000 hp fleet hp,
you would be a "large" fleet. However, say
between 3/1/2010 and 3/1/2011 you have 3,000 hp that
were used less than 100 hours during that period. Your
fleet size on 3/1/2011 would therefore be 7,000 hp -
3,000 hp = 4,000 hp. Hence, your fleet size on
3/1/20111 would be "medium" (2,501 to 5,000 hp)
and because the first compliance deadline for medium fleets
is 3/1/2013 you would not be subject to turnover or
retrofit until that date, even if you used that 3,000 hp
more than 100 hours between 3/1/2011 and 3/1/2012.
However, if instead of 3,000 year-to-year low use hp, it was 1,500 hp,
your fleet size on 3/1/2011 would be 5,500 hp. Hence, you would
still be a large fleet. However, you turnover and retrofit
obligation due on 3/1/2011 would be reduced. For example,
your retrofit obligation would be 12% of your fleet hp.
Hence, your 3/1/2011 obligation would be 5,500 hp x 12% = 660 hp
rather than 7,000 hp x 12% = 840 hp.
- Carryover Credit: The rule provides a variety of different credits that can be applied to Turnover and Retrofit obligations. These include:
- Tier 0 equipment retired or replaced at a rate greater than 8% between March 1, 2006 and March 1, 2009.
- Tier 1 or higher repowers done before March 1, 2009 where the existing engine was a lower Tier
- A reduction in fleet HP between March 1, 2006 and March 1, 2010
- A reduction in fleet activity (e.g., hp-hrs) between 2007 and 2010
- Installation of PM VDECS prior to December 31, 2009 (twice the credit)
Be careful. The calculation of the credits and what ARB will allow is fairly complex.
- Labeling: After you submit your initial report on the engines in your fleet ARB will issue you an "equipment identification number" or EIN that must be attached to the equipment within 30 days. If you purchase a piece of equipment you must apply for an EIN within 30 days of the date you purchase the equipment or bring it into the state. If the purchase occurs within 30 days form the date an annual report is due, you can use the annual report to report the new vehicle.
- Idling: You are prohibited from letting engines idle for more than five minutes except under certain circumstances (for example, queuing, equipment testing, getting an engine up to operating temperature). Medium and large fleets are required to have a written idling policy.
- Adding Equipment to a Fleet: After March 1, 2009 you cannot buy Tier 0 powered equipment (except for parts or to repower). If you meet your fleet average target(s) you can add a Tier 1 vehicle provided the emissions from that vehicle do not cause you to exceed your fleet average emission rate(s). If you do not meet your fleet average target you cannot add a vehicle unless it has Tier 2 or higher engine, or the vehicle's PM and NOx emission factor as adjusted with any VDECS is equal to or lower than the target rates for that engine for that year.
- Buying and Selling Equipment: If you buy or sell a piece of equipment subject to the rule you are supposed to notify ARB of the purchase or sale with 30 days. If you sell a piece of equipment you are required to include text in the sales receipt that the equipment could be subject to the In-Use Off-Road Rule.