Final Statement of Reasons for Rulemaking FOR THE ADOPTION OF AMENDMENTS TO THE REGULATION TO REDUCE EMISSIONS FROM IN-USE ON-ROAD DIESEL VEHICLES MADE AS PART OF THE PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENTS TO THE REGULATION TO REDUCE EMISSIONS FROM IN-USE ON-ROAD DIESEL-FUELED VEHICLES THE HEAVY-DUTY VEHICLE GREENHOUSE GAS EMISSION REDUCTION MEASURE, AND THE REGULATION TO CONTROL EMISSIONS FROM IN-USE ON-ROAD DIESEL-FUELED HEAVY-DUTY DRAYAGE TRUCKS AT PORTS AND INTERMODAL RAIL YARD FACILITIES Public Hearing Date: December 16 and 17, 2010 Agenda Item No.: 10-11-3 I. GENERAL ................................................................................................................ 1 A. ACTION TAKEN DURING THIS RULEMAKING ................................................................ 1 B. DOCUMENTS INCORPORATED BY REFERENCE ............................................................. 3 C. FISCAL IMPACTS....................................................................................................... 3 D. CONSIDERATION OF ALTERNATIVES ........................................................................... 4 II. NONSUBSTANTIVE CHANGES TO THE FINAL REGULATION ORDER ................................ 4 III. SUMMARY OF PUBLIC COMMENTS AND AGENCY RESPONSES ...................................... 7 A. SUMMARY OF COMMENTERS ..................................................................................... 7 B. SUMMARY OF PUBLIC COMMENTS PRESENTED PRIOR TO OR AT THE HEARING AND AGENCY RESPONSES ............................................................................................. 15 1. Need for Emissions Reductions ..................................................................... 15 a) Ambient Air Quality ................................................................................... 15 b) State Implementation Plan Commitments ................................................. 24 2. Health Effects ................................................................................................. 28 a) Public Health Impacts ............................................................................... 28 b) PM Emissions and Mortality ...................................................................... 40 3. Inventory ........................................................................................................ 51 a) Emissions Inventory Methodology - General ............................................ 51 b) Basic Inventory Calculation ....................................................................... 63 c) Heavy Duty Vehicle Populations ............................................................... 64 d) Mileage Accrual Rates .............................................................................. 64 e) Emission Factors ...................................................................................... 71 f) Estimated Odometer Values ..................................................................... 74 g) Assessment of Recession Impacts ........................................................... 84 h) Emission Reductions from the Regulation ................................................ 87 i) Peer Review of the Inventory .................................................................... 87 j) General ..................................................................................................... 88 4. Technology ..................................................................................................... 89 a) Availability of Verified DECS ..................................................................... 89 b) Performance of Verified DECS and OEM Technology .............................. 90 5. Regulatory Provisions .................................................................................... 93 a) General ..................................................................................................... 93 b) Engine Model Year Compliance Schedule and Phase in Option .............. 95 c) Changing Compliance Options ................................................................. 97 d) Requirements for a New Fleet and Changes to an Existing Fleet ............. 97 e) Credit for Early PM Retrofit ....................................................................... 99 f) Credit for Early Addition of Newer Vehicles ............................................ 100 g) Downsizing Credit ................................................................................... 105 h) Excess PM VDECS Credit ...................................................................... 106 i) Use of Incentive Funds for Credit Towards Compliance ......................... 108 j) Verified Emissions Control Strategies ..................................................... 108 i k) Alternative Fuel and Hybrid Vehicles ...................................................... 110 l) Rural Fleets ............................................................................................ 111 m) NOx Exempt Areas ................................................................................. 112 n) Low-Use Vehicles ................................................................................... 116 o) Low-Mileage Construction Trucks ........................................................... 116 p) Tow Trucks ............................................................................................. 127 q) Agricultural Fleets ................................................................................... 130 r) Two Engine Street Sweepers ................................................................. 133 s) Yard Trucks ............................................................................................ 133 t) Motor Home & Personal Use Exemption ................................................ 134 u) Reporting Requirements ......................................................................... 135 v) Emergency Support Vehicles .................................................................. 136 6. School Bus Requirements ............................................................................ 137 a) School District Budget Limitations........................................................... 137 b) Delay Regulation..................................................................................... 139 c) Exemption for Smaller School Buses and Extension for Private Fleets .. 141 d) Replace Not Retrofit School Buses ......................................................... 142 e) Technology Concerns ............................................................................. 145 f) Cost Analysis .......................................................................................... 146 g) School Bus Service Transportation Reduction ........................................ 150 h) Impact on Safety ..................................................................................... 151 i) Environmental Justice ............................................................................. 152 j) Funding ................................................................................................... 152 k) Benefits Assessment .............................................................................. 155 l) Reimbursable Mandate ........................................................................... 156 7. Cost and Economic Impact .......................................................................... 157 a) Delay or Eliminate Rule .......................................................................... 157 b) Impact on Businesses ............................................................................. 160 c) Economic Impact .................................................................................... 161 d) Comments by Small Businesses............................................................. 165 e) Competitive Advantage or Disadvantage ................................................ 167 f) Other Cost Comments ............................................................................ 168 g) Construction Industry Comments ............................................................ 171 h) Logging Fleet Comments ........................................................................ 177 i) Continue Monitoring and Evaluation ....................................................... 184 j) Economic Effects on Retrofit Manufacturers ........................................... 185 8. Funding ........................................................................................................ 190 a) Requests for Additional Incentive Funds for Log Trucks ......................... 190 b) Changes to Existing Funding Programs .................................................. 192 c) Low Mileage Vehicles ............................................................................. 196 d) Rural Fleets ............................................................................................ 198 9. Consideration of Alternatives ....................................................................... 199 a) Proposal for More Stringent Requirements ............................................. 199 b) Require Level 1 and Level 2 VDECS on Lighter Trucks ......................... 203 c) Performance of Engine and Retrofit Technology .................................... 204 ii d) Credit for Dual-Fueled Engines ............................................................... 205 e) Increase Mileage Limits .........................................................................