1. TRUCKS IN CALIFORNIA: WHAT U.S. & OVERSEAS COMPANIES MUST KNOW ABOUT CARB COMPLIANCE Knowledge Lab | Oct. 9 | 4:00pm-5:00pm

2. Summary  Air Quality Overview and Health Impacts  Diesel Emissions Reductions Programs  The Air Quality “Trifecta” in California  Enforcement & Responsible Parties  “Sustainable Freight Strategy”  Questions and Answers

3. California is a “Nation-State” Stats  37 million residents  Ranks as the 6 th or 7 th largest economy globally  About 25% of domestic logistics revenue touches the state  25 million light gasoline vehicles  Over 1 million diesel vehicles  Recognized nationally and internationally for emissions reductions programs

4. California Trade Corridors  Seaports and rail facilities are located in areas with high population density  Economic and environmental justice are concerns in these areas  The communities surrounding the ports have driven much of the change toward lower emissions  A public policy and economic tug of war continues on how to fund needed infrastruture

5. California Vessel Volume

6. California Container Volumes

7. Recent Headlines 10“California Leading on Emissions as Brown Signs New Laws”, Bloomberg News 9 “With California's blessing, the U.S. could leapfrog its own inaction and find itself once again at the forefront in the race to address climate change,” Los Angeles Times 8 “Obama Calls For More Ambitious Approach To Climate Change In U.N. Speech," National Public Radio 7 “The Environmental Protection Agency (EPA) is granting the California Air Resources Board's (CARB) request for a waiver of Clean Air Act preemption to enforce provisions of its Heavy-Duty Tractor-Trailer Greenhouse Gas Regulations,” Federal Register 6“EPA's Phase 2 Greenhouse Gas Rules Still Unknown,” Heavy Duty Trucking

8. Recent Headlines 5“ARB adopts changes to California’s Truck and Bus Regulation,” CARB press release 4“Left-coast gamble: CARB forces tough year end decision for many owner-operators,” Overdrive Magazine 3“Diesel truck and bus fleets fined for California air quality violations,” (over $2 million) CARB press release 2Interstate carriers and 3PL’s Alert: “International Brokers Case Settles for $300,000,” CARB press release 1What happens in California does not stay in California http://www.bloomberg.com/news/2014-09-23/california-leading-on-emissions-as-brown-signs-new-laws.html http://www.latimes.com/opinion/op-ed/la-oe-diperna-climate-un-cap-and-trade-california-20140923-story.html http://www.npr.org/blogs/thetwo-way/2014/09/23/350911527/obama-to-lays-out-approach-to-climate-change-in-u-n-speech https://www.federalregister.gov/articles/2014/08/07/2014-18742/california-state-motor-vehicle-pollution-control-standards-heavy-duty-tractor- trailer-greenhouse-gas http://www.truckinginfo.com/news/story/2014/09/epa-s-phase-2-greenhouse-gas-rules-still-unknown.aspx http://www.arb.ca.gov/newsrel/newsrelease.php?id=603 http://www.overdriveonline.com/left-coast-gamble-carb-forces-tough-yearend-decision-for-many-owner-operators/ http://www.arb.ca.gov/newsrel/newsrelease.php?id=610 http://www.arb.ca.gov/newsrel/newsrelease.php?id=434 http://www.joc.com/port-news/us-ports/south-carolina-ports-authority/south-carolina-ports-authority-launch-clean-truck- program_20131104.html

9. East Coast Actions

10. California Air Regulatory Overview Three Levels  The United States Environmental Protection Agency implements federal law relating to stationary and mobile sources of emissions  CARB implements mobile source controls  The 35 local Air Districts have some role in mobile sources but concentrate on stationary sources

11. CARB Structure  Twelve member Board  State legal authority to protect the public from pollution  The United States EPA acts upon “waiver” requests from CARB in order for CARB to enact fleet rules  Other states are adopting California-style rules (e.g. South Carolina Port Trucking)

12. CARB is Almost 50 Years Old Major initiatives:  Catalytic converters  Lead removal from gasoline  Low sulfur diesel  MTBE/oxygenated fuels  Low emission cars: ZEV/PZEV/ULEV/SULEV

13. By OzoneBy Year Round Particle PollutionBy Short Term Particle Pollution #1: Los Angeles Region, CA#1: Bakersfield, CA #2: Visalia – Porterville, CA#2: Hanford, CA#2: Fresno, CA #3: Bakersfield CA#3: Los Angeles Region, CA#3:Hanford, CA #4: Fresno, CA#4: Visalia-Porterville, CA#4: Los Angeles Region, CA #5: Hanford – Corcoran, CA#5: Fresno, CA#5: Modesto, CA #6: Sacramento Region, CA#6: Pittsburgh, PA #7: San Diego Region, CA#7: Phoenix, AZ#7: Salt Lake City, UT #8: Houston Region, TX#8: Cincinnati Region, OH#8: Logan, UT #9: San Luis Obispo, CA#9: Louisville Region, KY#9: Fairbanks, AK #10: Merced, CA#10: Philadelphia Region, PA#10: Merced, CA #11: Modesto, CA#10: St. Louis, MO#11: Provo – Orem, UT #12: Dallas-Fort Worth, TX#12: Steubenville-Weirton, OH#12: Visalia – Porterville, CA #13: Washington DC Region, MD/VA/WV#12: Birmingham. AL#13: Eugene – Springfield, OR #14: El Centro, CA#14: Indianapolis, IL#14: Green Bay, WI #15: New York - NY#14: Fairbanks, AK#15: Stockton, CA #16: Philadelphia – PA#14: Cleveland, OH#16: Las Cruces, NM #16: Chico, CA#17: Charleston, WV#17: Harrisburg, PA #18: Charlotte, NC#17: Dayton, OH#18: San Diego Region, CA #19: Phoenix, AZ#17: Columbus, OH#18 Chicago Region, IL #20: Pittsburgh, PA#20: Parkersburg, WV#20: Milwaukee, WI #21: Birmingham, AL#20: Wheeling, WV#21: Sacramento Region, CA #21: Cincinnati, OH#20: Huntington, WV#22: Washington DC Region, MD/VA/WV #23: Stockton, CA#23: Houston, TX#22: Philadelphia Region, PA #24: Baton Rouge, LA#24:Davenport Region, IA#22: Davenport, IA #25: Atlanta, GA#24:Hagerstown, MD#25: South Bend-Elkhart-Mishawaka, IN/MI

14. The Problem With Diesel Trucks % of Total On-Road Vehicles Heavy Duty 2% Light & Medium 98% 0 10 20 30 40 50 60 70 80 Total Vehicle Emissions 30% 65% NOxPM 10

15. Strategy 1: Cleaner Fuels  Stringent Diesel Fuel Standards (15 ppm sulfur diesel and aromatics 2006)  Low Carbon Fuel Standard (10% less carbon intensity by 2020)  The State’s strategy has officially been “fuel neutral” however grants and incentives for alternative fuels and biofuels have existed for many years  The South Coast AQMD strategy jump started natural gas vehicles (NGVs)

16. ~ 4,538Transit Buses ~ 3,632Light- and Medium- Duty Public Fleet Vehicles ~ 1,886Refuse Trucks ~ 1,965School Buses ~ 526Heavy-Duty Public Fleet Vehicles ~ 300Street Sweepers ~ 856Taxicabs and Airport Shuttles

17. : Fuel Pathways Affecting (GHG) Emissions

18. Strategy 2: Burn Fuel More Cleanly  Diesel motor vehicles number approximately 400,000 in-state registration and in excess of 600,000 visit the state annually  Waiting for turnover is not fast enough to meet federal standards  Diesel Risk Reduction Plan of 2000 (Reduce PM exposure 75% by 2010 and 85% by 2020)  Stringent Engine Certification Standards (2007 PM and 2010 NOx)  In – Use Programs (“The 3 Rs”: Retrofit, Repower, Replace + Incentives and Enforcement) = Clean Green Engines and Vehicles

19. Strategy 2: Implementation Urban buses - 2000 School bus and delivery vehicle idling - 2003 Solid waste collection vehicles - 2003 Transport refrigeration units - 2004 Stationary compression ignition engines - 2004 Truck idling - 2004 Portable engines - 2004 Locomotive and harbor craft fuel – 2004

20. Strategy 2: Implementation Transit fleet vehicles - 2005 Public agencies and utility on-road fleets - 2005 Port/rail cargo handling equipment - 2005 Ship auxiliary engine fuels - 2005 Off-road (e.g. construction and mining) vehicles - 2007 Drayage (port) trucks - 2007 Commercial harbor craft - 2008 Statewide trucks and buses

21. CARB Port-related Regulations

22. Phase 1: 2009 through 2013  20,000 heavy truck required diesel particulate filters or replacement statewide  In Los Angeles & Long Beach, replacement was required by 2012

23. Phase 2: 2014 through 2022  Heavy trucks that were retrofit must be replaced with 2010 or newer engines

24. Strategy 3: Burn Less Fuel  Regulates 53 foot and longer box-type trailers (dry-van & refrigerated-van trailers) and the tractors that pull them Tractor Trailer Greenhouse Gas

25. Fuel-tank skirts Integrated roof fairing Cab side gap fairings Aerodynamic bumper Aerodynamic mirrors Aero profile tractor Tractor Aerodynamics Trailer Aerodynamic s Tire Rolling Resistance SmartWay Program Information: http://epa.gov/smartway/ : Reduced Greenhouse Gas (GHG) Emissions

26. CARB Enforcement Summary

27. 2011 Closed Enforcement Actions Program Enforcement Actions Closed Penalties Mobile Sources3440$ 6,133,306 Fuels21$ 209,000 Consumer Products31$ 213,000 Cargo Tanks15$ 7,003 Railroad MOUs29$ 10,000 Total Cases3536$ 6,652,309

28. 2012 Closed Enforcement Actions

29. Who gets stopped for an inspection? Inspections are Random − Excessively smoking vehicles − Pre-2007 trucks with no filters will be easier to spot

30. What are they looking for? Engine labels Filter labels Excessive smoke

31. Enforcement at Ports

32. Inland Empire (Press Enterprise Nov. 20, 2013) http://video.pe.com/29Tit/diesel-crackdown-state- regulators-cite-offending-trucks/

33. Delinquent Citation Enforcement DMV “registration holds” (~2000 to date) CHP “out of service process” per Vehicle Code section 27159 (~500 to date -- vehicles held) CARB obtains judgments in Sacramento Superior Court under authority of California Health and Safety Code section 44011.6 (~ 3,500 obtained to date) CARB executes judgments to place liens on property, etc.

34. “Supply-Chain” Liability DRIVER CARRIER DISPATCHER SHIPPER RECIEVER BROKER 1. Emission Control Label 2. HDVIP 3. PSIP 4. Idle Reduction 5. Transport Refrigeration Unit 6. GHG (SmartWay) Rule 7. Drayage Truck Rule 8. Statewide Truck and Bus

35. April 2014 Hearing

36. “Economic Hardship”

37. Questions & Answers

38. Thanks…. Sean Edgar CleanFleets.net 916-520-6040 Ext 104 Sean@ CleanFleets.net