California Air Resources Board (CARB) Diesel Regulations CMSA President Stephen J. Weitekamp

1. California Air Resources Board (CARB) Diesel Regulations CMSA President Stephen J. Weitekamp October 15, 2013

2. 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.

3. 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.

5. CARB REGULATION OUTLINE • CARB in the News • Diesel Rules • Vehicle Inspections • Emission Control Labels • Diesel Particulate Filter • Excessive Smoke Inspection • Idling Limitation Rule • On-Road Diesel Engine Requirements • Compliance • Reporting • Sales Disclosure • Exemptions, Extensions & Credits • Fines and Penalties

6. CARB in the News

7. Left-Coast Gamble: CARB Forces Tough Yearend Decision for Many Owner-Operators Source: Overdrive Online from September 27, 2013 • “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.”

8. Left-Coast Gamble: CARB Forces Tough Yearend Decision for Many Owner-Operators Source: Overdrive Online from September 27, 2013

9. Air Board has Allies in Diesel Pollution Crackdown: Truckers Source: Los Angeles Times from September 15, 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.”

10. California Air Resources Board Cracks Down on Big Rigs Source: Sacramento Bee from September 18, 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.”

11. Commercial Diesel Rules

12. What Diesel Rules Apply to You? • 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?

13. 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.

14. Commercial Vehicle Inspection

15. Roadside Inspections

16. Vehicle Inspections Vehicles can be inspected anywhere and anytime in California, such as: • CHP scales or inspection facilities • Ports • AG inspection stations • Rail yards • Distribution centers • Truck stops • Rest areas • Random roadside locations • Place of business

17. Vehicle Inspections The inspector will: • Ask driver for driver’s license and proof of vehicle registration. • Verify that the vehicle has no outstanding violations. • 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.) • Instruct driver to open the hood of the vehicle to review the Emission Control Label and evidence of emission control system tampering.

18. Vehicle Inspections (continued) • Determine if vehicle meets applicable regulations and meets reporting requirements for Truck and Bus Rule. • Check for a Diesel Particulate Filter (if required). The inspector will see if the filter is properly installed and labeled. • Check the warning lights on the vehicle’s dashboard. • Inspect for illegal diesel fuel and will check the fuel tanks.

19. Emission Control Labels ECL must be: • Installed by dealer or manufacturer • Legible • Correct for the engine (correct engine family) • Label must show engine was certified to U.S. EPA emissions standards

20. Emission Control Labels

21. Emission Control Labels

22. 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.

23. Diesel Particulate Filter Labeling The Diesel Particulate Filter (DFP) Label contains: • Mfr name, address, phone number • DECS family name • Serial number • Month/year Mfr

24. 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 0.0 1.0 2.0 3.0 4.0

25. Periodic Smoke Inspection Program (PSIP) Applicability • 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.

26. 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.

27. Illegal Diesel Exhaust Fluid (DEF) Check for appropriate DEF and proper use of DEF.

28. Commercial Vehicle Idling Limitation

29. 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, repair • Queuing • When operating a power take-off (PTO) device • Certified clean idle vehicles with clean idle label

30. 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

32. On-Road Diesel Engine Requirements

33. 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.

34. 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 California • California-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 regulations • Two-engine vehicles greater than or equal to 50 hp (except two-engine street sweepers)

35. 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.

36. 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

37. Weight Classes

38. Engine Model Year Compliance Schedule for Lighter Vehicles Starting January 2015, 1995 and older MY engines must meet 2010 MY engine requirement. • No reporting required. • There are limited flexibility options.

39. Engine Model Year Compliance Schedule for Heavier Vehicles CARB inspectors will check for compliance with the engine MY schedule! No reporting required.

40. 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 Schedule • Small Fleet Option • Low Use Vehicles • NOx Exempt Areas • Three Day Pass • PM filter extension

41. Compliance: Phase-In Option Vehicles with a GVWR greater than 26,000 lbs. Credits (opt-in period closed): • Downsizing • Age Reduction • Hybrid/Alternative Fuel • Off-Road retrofits • Early PM retrofit Reporting is required to use this option (opt-in period closed).

42. 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.

43. 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.

44. 2016 2015 2014 Small Fleet Provision 3 or fewer trucks > 14K GVWR Delays PM filters for heavier trucks 2014 - 2016 Must report Must meet engine model year schedule starting January 1, 2020

45. Compliance: Small Fleet Option for Heavier Trucks This 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.

46. 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.

47. 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.