California Air Resources Board (CARB) Diesel Regulations

CMSA President Stephen J. Weitekamp

October 15, 2013

I am not here to discuss ways to avoid the rule or game the system.

Google’s Executive Chairman Eric Schmidt recently stated:

“There were 5 exabytes of information created by the entire world between the dawn of civilization through 2003 … Now that same amount is created every two days … the growth rate, of course, is accelerating…”

My takeaway is that it’s getting ever easier for regulators to find those not

in compliance.

CARB Summary

Thousands of HHG tractors will become illegal in California in 2.5 months and thousands of bobtails forced to phase out by 2015.

Thousands of flat floor trailers are illegal now.

Van lines and agents that fail to verify that compliant equipment is being dispatched have exposure to retroactive penalties today as well as every load dispatched going forward.

There are severe consequences to our industry if we fail to confront and overcome this problem.

If you depend on revenue from California activity, then you need to be part of the dialogue and solution.

CARB REGULATION OUTLINE

CARB in the NewsDiesel RulesVehicle Inspections Emission Control Labels Diesel Particulate Filter Excessive Smoke Inspection

Idling Limitation RuleOn-Road Diesel Engine

Requirements Compliance Reporting Sales Disclosure Exemptions, Extensions & Credits Fines and Penalties

CARB in the News

“If staying out of California is your strategy, know that it’s something of a gamble in terms of the rest of the country…”

“As regards clean air laws, ‘what starts in California ends up running across the United States,’ Bill McClusky, maintenance consultant for business services provider.”

"Given the large pre-buy of 2006 model-year engines, many of which ended up in 2007 model-year trucks, Joe Rajkovacz, government affairs director at the California Construction Trucking Association, estimates somewhere between 70% and 90% percent of the diesel vehicle population will be exposed to the regulation.”

Left-Coast Gamble: CARB Forces Tough Yearend Decision for Many Owner-Operators

Source: Overdrive Online from September 27, 2013

Left-Coast Gamble: CARB Forces Tough Yearend Decision for Many Owner-Operators

Source: Overdrive Online from September 27, 2013

“As state air pollution officials step up inspections of diesel exhaust from big rigs, some of their best allies are truckers themselves.”

Michael Shaw, a spokesman for the California Trucking Assn, said:

“Companies have invested millions of dollars only to be undercut by carriers that are choosing not to comply because they figure they won't get caught…”

"Truckers are also the No.1 tipsters, placing anonymous calls and sending emails to finger competitors they say are gaining an unfair advantage by not upgrading their engines or installing expensive filters that capture harmful diesel particulates before they are released into the air.”

Air Board has Allies in Diesel Pollution Crackdown: TruckersSource: Los Angeles Times from September 15, 2013

On Sept. 17, “two ARB inspectors were checking big rigs southbound on Highway 99, just north of the split with Interstate 5, to see if they were complying with the agency’s requirements.”

“For the 57 trucks pulled over at the spot [on Sept. 17], eight citations were issued.”

“For the first six months of 2013, the agency has conducted about 3,100 inspections of trucks and buses in the state and has issued about 390 citations.”

California Air Resources Board Cracks Down on Big Rigs

Source: Sacramento Bee from September 18, 2013

Commercial Diesel Rules

How many diesel vehicles do you own?

What is the fully loaded or gross vehicle weight rating of your vehicle(s)?

What is the engine model year(s)?

Do you own any 53-foot box-type or longer trailers or tractors that pull them? How many?

What Diesel Rules Apply to You?

Gross Vehicle Weight Rating (GVWR)

The GVWR is assigned by the vehicle manufacturer and represents the maximum weight of the vehicle and what it can carry when fully loaded. The GVWR includes the weight of the vehicle itself plus fuel, passengers, cargo, and trailer tongue weight. The label that identifies the GVWR is typically located on the driver's door post.

The GVWR is not the same as the unladed weight, gross combined weight rating, or registered weight rating.

Commercial Vehicle Inspection

Roadside Inspections

Vehicle Inspections

Vehicles can be inspected anywhere and anytime in California, such as:

CHP scales or inspection facilitiesPortsAG inspection stationsRail yardsDistribution centersTruck stopsRest areasRandom roadside locationsPlace of business

Vehicle InspectionsThe inspector will:

1. Ask driver for driver’s license and proof of vehicle registration.

2. Verify that the vehicle has no outstanding violations.

3. Conduct a visual snap test for excessive smoke. (If vehicle does not pass visual opacity test, inspector will conduct another test using a smoke opacity meter.)

4. Instruct driver to open the hood of the vehicle to review the Emission Control Label and evidence of emission control system tampering.

Vehicle Inspections (continued)

9. Determine if vehicle meets applicable regulations and meets reporting requirements for Truck and Bus Rule.

6. Check for a Diesel Particulate Filter (if required). The inspector will see if the filter is properly installed and labeled.

7. Check the warning lights on the vehicle’s dashboard.

8. Inspect for illegal diesel fuel and will check the fuel tanks.

Emission Control Labels

ECL must be:

Installed by dealer or manufacturerLegibleCorrect for the engine (correct engine family)Label must show engine was certified to U.S.

EPA emissions standards

Emission Control Labels

Emission Control Labels

Correcting a Missing/Illegible ECL

Violation

• Contact the dealer to order a replacement label.

• Dealer will affix ECL to engine in a location specified by the engine manufacturer. (Vehicle owner cannot affix replacement labels.)

• Keep invoice in vehicle until replacement label is installed.

Diesel Particulate Filter Labeling

The Diesel Particulate Filter (DFP) Label contains:

Mfr name, address, phone numberDECS family nameSerial numberMonth/year Mfr

Visual Inspection – Excessive Smoke

Visual Snap Acceleration Test:The inspector will visually check spoke opacity

with the driver accelerating the engine rapidly in the neutral position with the wheels blocked.

0.10

0.07

0.06

0.05

0.04

0.03

0.02

0.01

0.00

4.02.0 3.01.00.0

Periodic Smoke Inspection Program (PSIP)

Applicability

GWVR (lbs.)

Mfr. Year

>4 Years Old

Non-Attainm

ent

Attainment

Biennial

Smog Check

Annual

PSIP

Biennial PSIP

6,000-14,000

1998 and newer

X X

6,000-14,000

1998 and newer

X X

6.000-14,000

1997 and older

X X X

> 14,000 Any MY

X X X X

• Fleets of 2 or more California-based diesel vehicles with a GVWR more than 6,000 lbs.

• Vehicles with engines more than 4 years old.

Illegal Diesel Fuel

• Check for use of dyed fuel (off-road agricultural use diesel fuel) or high sulfur fuel.

• Positive test – referred to Board of Equalization (BOE) and IRS.

Illegal Diesel Exhaust Fluid (DEF)

Check for appropriate DEF and proper use of DEF.

Commercial Vehicle Idling Limitation

Idling Limitation

There is a 5-minute idling limit for diesel-fueled commercial vehicles with a GVWR greater than 10,000 lbs.

Exceptions:Testing, servicing, repairQueuingWhen operating a power take-off (PTO) device Certified clean idle vehicles with clean idle label

Idling Reduction Technologies Available

• Certified clean idle engine – Truck meets optional NOx idling emission standard

• Battery-powered auxiliary power systems

• Diesel-fueled auxiliary power unit

• Fuel-fired heaters

• Truck stop infrastructures that provide heating, cooling and electricity

On-Road Diesel Engine Requirements

On-Road Diesel Engine Regulation

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 recordkeeping 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.

Truck and Bus Regulation Applies to Private and

Federal Fleets

Diesel trucks and buses with a GVWR over 14,000 lbs. that operate in California, including:

Any person, business or government agency who owns, leases, rents or sells a vehicle in CaliforniaCalifornia-based brokers and dispatchers

Exclusions:Emergency vehicles, military tactical vehicles, personal-use motor homes, personal-use pickup trucks with a GVWR 19,500 lbs. or less, historic wheels

Most vehicles subject to other in-use regulationsTwo-engine vehicles greater than or equal to 50 hp (except two-engine street sweepers)

On-Road Diesel Engine Regulation

• Engines must be upgraded to 2010 MY engine technology or removed from fleet by 2023.

• Heavier trucks (26,001 lbs. GVWR and greater) are required to have a PM filter installed to comply.

Compliance: Terminology

What is a PM Filter?A PM Filter is the highest level retrofit (greater than or

equal to 85% PM reduction). It’s originally equipped on most 2007 MY and newer engines.

What does the term “2010 model year (MY) engine*” mean?

The 2010 model year engine is an engine certified to 2010 MY emission standards.

*or equivalent

Weight Classes

Engine Model Year Compliance Schedule for

Lighter Vehicles

Schedule for Lighter Trucks and Buses

Engine Year 2010 MY Engine

1995 and older

January 1, 2015

1996 January 1, 2016

1997 January 1, 2017

1998 January 1, 2018

1999 January 1, 2019

2003 and older

January 1, 2020

2004-2006 January 1, 2021

2007-2009 January 1, 2023

Starting January 2015, 1995 and older MY engines must meet 2010 MY engine requirement.

•No reporting required.•There are limited flexibility options.

Engine Model Year Compliance Schedule for

Heavier VehiclesCARB inspectors will check for compliance

with the engine MY schedule!

No reporting required.

Schedule for Heavier Trucks and Buses

Engine Year PM Filter 2010 MY Engine

Pre-1994 Not required January 1, 2015

1994-1995 Not required January 1, 2016

1996-1999 January 1, 2012 January 1, 2020

2000-2004 January 1, 2013 January 1, 2021

2005 or newer January 1, 2014 January 1, 2022

2007-2009 Already equipped January 1, 2023

Compliance:Exemptions, Extensions &

Credits

If your fleet does not meet the requirements of the engine model year schedule, CARB inspectors and staff conducting fleet audits will verify the fleet has reported to use flexibility options, which include:

Phase-In ScheduleSmall Fleet OptionLow Use VehiclesNOx Exempt AreasThree Day PassPM filter extension

Compliance: Phase-In Option

Vehicles with a GVWR greater than 26,000 lbs.

Credits (opt-in period closed):

DownsizingAge ReductionHybrid/Alternative FuelOff-Road retrofitsEarly PM retrofit

Phase-In Option for Heavier Trucks

Compliance Date

Vehicles with PM Filters

January 1, 2012 30%

January 1, 2013 60%

January 1, 2014 90%

January 1, 2015 90%

January 1, 2016 100%

Reporting is required to use this option(opt-in period closed).

Compliance: Phase-In Option Checklist

• Report fleet information to CARB by January 31 annually.

• Meet requirements of the Phase-In Schedule.

60% of fleet must have PM filter installed by January 1, 2013, unless using credits or other extensions.

• Update records annually.

• Make records available to CARB upon request.

Small Fleet Provision

“Fleet Size” means the total number of diesel vehicles with a GVWR greater than 14,000 lbs in a fleet, regardless of whether the vehicles operate

in California, that are under common ownership or control even if they are part of different

subsidiaries, divisions, or other organizational structures of a company or agency.

“Fleet Size” means the total number of diesel vehicles with a GVWR greater than 14,000 lbs in a fleet, regardless of whether the vehicles operate

in California, that are under common ownership or control even if they are part of different

subsidiaries, divisions, or other organizational structures of a company or agency.

Small Fleet Provision

3 or fewer trucks > 14K

GVWR

3 or fewer trucks > 14K

GVWR

Delays PM filters for heavier trucks

2014 - 2016

Delays PM filters for heavier trucks

2014 - 2016

Must report

Must meet engine model year

schedule starting January 1, 2020

Must meet engine model year

schedule starting January 1, 2020

Compliance: Small Fleet Option

for Heavier TrucksThis option applies to fleets with 3 or fewer trucks with a GVWR greater than 14,000 lbs. The option delays PM filter requirements until 2014 for heavier trucks and requires reporting.

Small Fleet Option Reporting Schedule for Heavier Trucks

Engine Year Reporting Deadline

1996-1999 March 30, 2012

2000-2004 January 31, 2013

All other engine years January 31, 2014

Compliance: Small Fleet Option

Checklist

Verify fleet size as 3 or fewer vehicles under common ownership and control.

Report to CARB based on engine model year.

Install first PM filter on one heavier truck by January 1, 2014.

Meet engine model year schedule, starting January 1, 2020, or later.

Single vehicle owner operators have until 2023 if they report a PM filter is installed by January 1, 2014.

Compliance: Low Use Vehicle Exemption

Vehicles must travel less than 1,000* miles per year in California.

Report to CARB by January 31 of the compliance year the provision is first used.

Verify mileage is reported correctly. Report mileage annually.

Install functioning odometer/hour meter. Hub odometer must be non-resettable with lock

out feature and serial number.

Keep documents if deducting emergency support use to stay below mileage limitations and/or operating a low-use vehicle out of state.

Compliance: Reporting Requirements

• Reporting is required for all vehicles using regulatory flexibilities.

• Must be completed by January 31 annually. Changes to the fleet must be reported within 30

days.

• Report online using Truck Regulation Upload, Compliance, and Reporting System (TRUCRS).

• What information should be reported?

Basic vehicle information, engine information, company information, contact, flexibility-based information

Online Reporting

Compliance: Sales Disclosure

Requirement

Sellers must provide disclosure in writing to the buyer on the bill of sale, sales contract addendum or invoice that reads:

“An on-road heavy-duty diesel or alternative-diesel vehicle operated in California may be subject to the California Air Resources Board Regulation to Reduce Particulate Matter and Criteria Pollutant Emissions from In-Use Heavy-Duty Diesel Vehicles. It therefore could be subject to exhaust retrofit or accelerated turnover requirements to reduce emissions of air pollutants. For more information, please visit the California Air Resources Board website at http://www.arb.ca.gov/dieseltruck.”

Compliance: Recordkeeping Requirements

Fleets must submit records to CARB upon request, including:

Verified PM retrofit filtersBill of sale with date of purchase, maintenance records

Proof of ownershipTitle, registration or bill of sale

Proof of operationIRP records, GPS tracking records, DMV or other law enforcement permits, bill of lading or other documentation of dispatch

Changes since last reportingBill of sale, purchase orders, maintenance records or other documentation

Compliance: Broker/Dispatcher

Checklist

• Must verify that each hired or dispatched vehicle is in compliance with the regulation

Check vehicle engine model year with engine model year compliance schedule

— Ask for certificate of reported compliance— Use lookup feature in TRUCRS

• Must keep records

Bills of lading and other documentation identifying who dispatched the vehicle and the vehicle that was dispatched

Non-Compliance: Fines and Penalties

The purpose of CARB’s fines and penalties is to promote compliance with the law, deter violators, and provide a fair and consistent playing field. The fines and penalties include:

$300-$10,000 per vehicle per dayCollection proceedingsLiens on real estate, personal property or assetsDMV Vehicle License Title Stop (VLT)CHP impoundState Controller – state agency payment offsetFranchise Tax Board – tax offset

Non-Compliance: Fine Factors

Fines are determined by:

Extent of harm caused by the violation

Magnitude of non-compliance

Compliance history – length of time of non-compliance

Attempt to comply

Willfulness of the violation Cooperation during the investigation and

mitigating circumstances Financial burden

Pacific Green Trucking, Inc. Case Settles for $31,800.00

Source: CARB website from September 2013

“An investigation by the California Air Resources Board (CARB) showed that PACIFIC GREEN TRUCKING violated the Drayage Truck Regulation by dispatching noncompliant trucks to railroads and failed to properly self-inspect their diesel trucks to assure the trucks met state smoke emission standards. ARB documented violations as they related to the Periodic Smoke Inspection Program (PSIP) and the Drayage Truck regulation. To settle the case, PACIFIC GREEN TRUCKING agreed to the $31,800.00 penalty and to comply with the PSIP Program and Drayage Truck Regulation.”

Pacific Green Trucking, Inc. Case Settles for $31,800.00 (Continued) – Drayage Violations

Source: CARB website from September 2013

“The per vehicle penalty for the drayage violations involved in this case is a maximum of $1,000 per vehicle per day for strict liability violations or $10,000 per vehicle per day for negligent or intentional violations pursuant to HSC section 39674. The penalty obtained for the drayage motor carrier violations involved in this case is $20,800: $6,000 for operating 6 non-compliant trucks at $1,000 per truck, $10,300 for dispatching non-compliant trucks 103 times at $100 per dispatch, $4,500 for dispatching 9 vehicles not registered in the drayage truck registry for the years 2011 at $500 per truck.”

Fight Non-Compliant Movers

by Informing the PublicIn addition to reporting on non-compliant carriers as the “Air Board has Allies” article has shown, compliant companies can also inform customers about the issue.

Communications should include:

•A general description of the CARB regulations in effect.•Inform consumers how to verify that moving companies are CARB-compliant.•Inform consumers on what steps your company has taken to abide by the regulations.

About CARB

CARB’s authority includes:

• California Health and Safety Code• California Vehicle Code• Working in conjunction with the CHP• Agreements with various air districts and

ports

Contact CARBFor more information about CARB regulations, truck owners can contact the agency at:

CARB Diesel Hotline(866) 6DIESEL or (866) 634-3735

CARB Diesel Hotline Email Address8666diesel@arb.ca.gov

Smoking Vehicle Complaint Hotline1-800-END-SMOG

Non-Compliant Carrier Complaint Hotline1-800-EXHAUST

Truck owners can also visit CARB’s websites at:Enforcement Program

www.arb.ca.govTruck Stop

www.arb.ca.gov/truckstop

Stephen J. Weitekamp, Presidentsweitekamp@thecmsa.org

California Moving & Storage Association10900 E. 183rd Street, Suite 300

Cerritos, CA 90703-5370Phone: (562) 865-2900,

(800) 672-1415 (State of California only)Fax: (562) 865-2944

Visit us online at www.thecmsa.org!

CleanFleets.netSean Edgar, Directorsean@cleanfleets.net

Contact Information