This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. ENVIRONMENTAL PROTECTION OFFICE OF AIR QUALITY MANAGEMENT National Low Emission Vehicle (NLEV) and Heavy-Duty Diesel New Engine Standards Program Proposed Amendments: N.J.A.C. 7:27-26.1, 26.2, 26.3-26.5 (title of section, only), 26.6, 26.7 and 26.15 Proposed New Rules: N.J.A.C. 7:27-26.8, 26.9, 26.10 and 26.11 Authorized by: Robert C. Shinn Jr., Commissioner, Department of Environmental Protection Authority: N.J.S.A. 13:1B-3(e), 13:1D-9, 26:2C-8 et seq., specifically 26:2C-8, 8.1 through 8.5, 8.11, and N.J.S.A. 39:8-61. DEP Docket Number: 15-01-06/232 Proposal Number: A public hearing concerning this proposal will be held at 10:00 a.m. on Monday, August 20, 2001 at: First Floor Public Hearing Room Department of Environmental Protection 401 E. State Street Trenton, New Jersey Submit written comments, identified by the DEP Docket Number given above, by August 22, 2001, to: Attn: Ms. Stacey P. Roth, Esq. DEP Docket No. 15-01-06/232 Office of Legal Affairs New Jersey Department of Environmental Protection PO Box 402 Trenton, N.J. 08625-0402 Several documents are cited within this notice as references or as documents being incorporated by reference. Copies of these documents may be requested from: 1 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. New Jersey Department of Environmental Protection Public Access Center 401 E. State Street, 1st floor PO Box 402 Trenton, N.J. 08625 An additional source of documents cited within this notice as references or as documents being incorporated by reference are available from the World Wide Web from the website of the United States Environmental Protection Agency (EPA), Office of Mobile Sources at the following Internet address: www.epa.gov/omswww, and from the website of the California Air Resource Board (CARB) at: www.arb.ca.gov/regact/ntetest/ntetest.htm Visit our website at: www.state.nj.us/dep/aqm, where Air Quality Management rules, proposals, adoptions and SIP revisions are available. The agency proposal follows: Summary The Department of Environmental Protection (the Department) is proposing new rules and amendments to N.J.A.C. 7:27-26 (currently entitled "Ozone Transport Commission - Low Emission Vehicle Program"), its rules which currently control New Jersey's participation in the National Low Emission Vehicle (LEV) program as well as its backstop Ozone Transport Commission - Low Emission Vehicle (OTC-LEV) Program. These new rules and amendments would add standards for the new engines used in heavy-duty diesel vehicles, sometimes referred to as “Not-To-Exceed (NTE)” standards. (In order to indicate that rules for both light-duty passenger vehicles and heavy-duty diesel engines are contained within this subchapter, N.J.A.C. 7:27-26 would be renamed "National Low Emission Vehicle Program and Heavy-duty Diesel New Engine Standards.") The Department is working cooperatively with the New Jersey Department of Transportation, Division of Motor Vehicles to develop enforcement mechanisms to ensure effective implementation of these standards for new heavy-duty diesel engines. This rulemaking is part of a multi-state initiative; to date, 20 states have committed to 2 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. adopting these NTE standards, and more are expected to follow suit. New Jersey has joined with these states in stating its intent to promulgate NTE standards identical to those adopted in California for heavy-duty diesel engines bought, sold or registered in New Jersey. New Jersey is also a signatory to the Memorandum of Understanding approved by the Ozone Transport Commission on December 11, 2000, supporting the efforts of member states to adopt such standards and whereby signatory states committed to proposing the same. Non-OTC states that have indicated a commitment to pursuing NTE rulemaking include Arizona, Georgia, Minnesota, Nevada, North Carolina, Texas and Wisconsin. Promulgation of the NTE standards would further the Department's Strategic Plan Clean Air Goal. Specifically, the reduction in emissions from heavy-duty diesel vehicles traveling through the State would help achieve the Strategic Plan Milestone that, by 2007, air throughout the State will meet national Clean Air Act standards for ozone and other air pollutants. This rulemaking will also support New Jersey's Environmental Performance Partnership Agreement Air Quality Milestones relating to 1) the ozone State Implementation Plan (SIP) (attainment of the 1-hour and 8-hour air quality standards for ozone Statewide by 2007), 2) the national health standard for particulate matter (PM) (maintaining current attainment status for PM10 and attaining the new fine particulate standard (PM2.5) by 2007) and 3) air toxics (reducing toxics emissions from motor vehicles). More specifically, by realizing reductions of oxides of nitrogen (NOx) emissions from these vehicles that would not otherwise be achieved, these standards will support our efforts to meet the national ambient air quality standard (NAAQS) for ozone. In addition, reduced emissions will translate into lower levels of particulate matter generally and, more specifically, of levels of PM2.5 from these vehicles, also supporting our efforts to attain or maintain this new standard in a timely fashion. Finally, reduction of diesel emissions also means a reduction of air toxics from this source. 3 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Background In the 1990s, seven large manufacturers of heavy-duty diesel engines (HDDEs) violated federal certification regulations by turning off, or defeating, emissions control equipment during in-use highway driving. To address this violation, the Department of Justice, the EPA and the California Air Resources Board (CARB) signed consent decrees with the seven engine manufacturers. In the consent decrees, the settling manufacturers are required, among other things, to produce HDDEs that comply with prescribed emission standards that are lower than those currently required by CARB and EPA regulations, as measured by the Federal Test Procedure (FTP), no later than October 1, 2002. (These standards are about 50 percent cleaner than currently available engines). In addition, because it was found that the FTP was not adequate to ensure that exhaust emissions were controlled during all in-use driving, it was agreed that compliance with supplemental test procedures would be necessary. Thus, the majority of the settling manufacturers agreed to produce engines by October 1, 2002, that would meet supplemental test procedures including the Not-To-Exceed (NTE) test and the EURO III European Stationary Cycle (ESC) test. (These tests are described in greater detail, below.) The consent decrees state that these requirements must be met for a period of two years. Together with the FTP test, the supplemental test procedures will require control of emissions during the majority of real world operating conditions, ensuring that in the future defeat devices will no longer be employed. The consent decrees would cover in the area of 80 percent of engines manufactured for sale in the United States. Recognizing the effectiveness of the supplemental tests, on October 29, 1999, the EPA published a Notice of Proposed Rulemaking (64 FR 58472) proposing to adopt similar supplemental test procedures for 2004 and subsequent model year HDDEs. However, because of statutory federal timing constraints, the NTE and ESC test procedures will not be required until the 2007 model year for federally-certified HDDEs (65 FR 59896, October 6, 2000). Therefore, once the consent decree requirements expire in 2004, the settling manufacturers will not be obligated to comply with the supplemental test procedures for model years 2005 or 2006. Not until the 2007 model year, when the federal rule comes into effect, will HDDE manufacturers be required to comply with the supplemental test procedures, federally. 4 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. In order to assure continued compliance during model years 2005 and 2006 by the settling manufacturers and to begin compliance by all other manufacturers with model year 2005, California adopted rules on December 8, 2000, to include the NTE and ESC tests in the required California certification process for 2005 and subsequent model year HDDEs. California's supplemental test procedures parallel those in the consent decrees and the EPA's Final Rule for 2007 and subsequent model year HDDEs, but differ by adding options for flexibility and by exempting "ultra-small volume manufacturers" and "urban buses" until the 2007 model year in order to allow additional lead time for compliance. (Urban buses are already subject to more stringent standards for model years 2002 through 2007 in California.) Thus California's rulemaking closes the two-year gap, for vehicles sold in that state, between the termination of the consent decrees and the effective date of the new Federal standards, during which time engine manufacturers would only have been required to satisfy the FTP test procedure currently required under the EPA's regulations. A simplified view of heavy-duty diesel engine emission standards, emission levels, and emission reductions before, during and after the period covered by the consent decrees is provided below at Figure 1. 5 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Figure 1 16 Simplified View of Emission Standards for Heavy Duty Diesel Engines (HDDE) 14 12 As part of consent decree, violating manufacturers have to certify their engines to EURO testing protocols beginning in 1999, although manufacturers are not required to stop using defeat devices until 2002 Emission levels due to defeat devices 10 8 8.5 6 4 2 Emission reduction provided by Federal Consent Decree 6 Emission reduction available from California "NTE" Rule 5 Applicable National Emission Standards which require use of FTP testing protocols 4 Applicable National Emission Standards which require use of ESC & NTE testing protocols 2.4 0 1905 Pre-1985 1905 1985 1905 1990 1905 1995 6 1905 2000 1905 2005 1905 0.2 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. New Jersey's role: By adopting California's NTE standards, New Jersey, like California, would address the regulatory temporal gap for heavy-duty diesel engines sold in its jurisdiction between the end date for standards established by the consent decrees discussed above (in effect until 2004) and the start date of the EPA’s new heavy-duty diesel engine standards (not in effect until model year 2007). New Jersey's adoption of these standards for new heavy-duty engines during the regulatory gap could prevent the loss of NOx emission reductions which is predicted due to this temporal gap. The resultant excess NOx emissions in New Jersey are believed to be approximately 15,237 tons for 1996, alone. Furthermore, implementation of the more stringent NTE standards in 2005 would generate emission reductions for which the State could take credit in its ozone SIP and which could be used to meet the additional emission reductions which the EPA has identified as necessary for the State to meet its ozone attainment demonstration SIP revisions. Regional/national efforts: States across the Nation have joined OTC members in committing to adopt the standards promulgated by California, bringing the total of committed states to more than 20 at this time. Once a sufficient number of states have adopted these standards to reach a critical level of new engines which must meet these standards, the NTE standards are expected to become de facto national in character, since engine manufacturers will almost certainly find it less economical to produce two different engines. This should result in an even greater emission reduction benefit to states, like New Jersey, which play host to many heavy-duty diesel vehicles purchased and registered in other states. The supplemental test procedures: CARB has described these test procedures in its Staff Report: Initial Statement of Reasons, released October 20, 2000. The full text of that report can be viewed or downloaded from CARB’s website at www.arb.ca.gov/regact/ntetest/ntetest.htm.. The EPA has also described these procedures in its proposal at 65 Fed. Reg. 59895. CARB also provided a more concise description in Mail Out #MSC-00-20, dated September 15, 2000, from which the following description is taken. The Mail Out is also available at CARB’s website at http://www.arb.ca.gov/msprog/mailouts/mouts_00.htm. 1. Not-to-Exceed Test Procedure The NTE test, as defined by the EPA in 40 C.F.R. 86.1370-2007, establishes an area (NTE 7 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. control area) under the torque curve of an engine where emissions must not exceed a specified standard for a given pollutant. The NTE control area for diesel engines is a function of engine speed and all engine operation at or above 30 percent of the maximum torque value of the engine. The NTE requirement would apply under any engine operating conditions that could reasonably be expected in normal vehicle use. In addition, the NTE is applicable in a wide range of ambient conditions. For example, NTE ambient temperature coverage can range from 55º to 95º F compared to the FTP ambient conditions of 68º to 86º F. These requirements would apply to new engines throughout their useful life. A vehicle can be tested using the NTE procedure either on the road or in an emission testing laboratory using an engine or chassis dynamometer. Instead of using a specific driving cycle such as the FTP, it involves driving of any type which could reasonably be expected to occur in normal vehicle operation within the boundaries of the NTE control area, including operation under steady-state or transient conditions and under varying ambient conditions. Measured emissions are averaged over a minimum of thirty seconds and compared to the NTE emission limit. Additionally, CARB’s NTE requirements provide manufacturers with two different NTE compliance options related to temperature and altitude. Under option one, manufacturers can choose to comply with the NTE emission standards within the ambient temperature range of 55º F to 95º F, up to 5,500 feet above sea level, without an altitude-based temperature correction. Under option two, manufacturers can use correction factors for the temperature at different altitudes. For example, the upper temperature limit is 100º F at sea-level and 86º F at 5,500 feet above sea-level. In the EPA’s Final Rule (65 Fed. Reg. 59896, October 6, 2000), as an allowance for minor deviations from the NTE requirements only, an NTE deficiency provision for 2007 and subsequent model year engines provides manufacturers with a relief mechanism for failing to comply with some of the NTE requirements. That is, for model years 2007, 2008 and 2009, the EPA may accept a HDDE as compliant with the NTE standards even though some specific requirements are not met. (65 Fed. Reg. 59914, October 6, 2000.) Unlike the EPA’s Final Rule, however, CARB’s NTE rule does not include deficiency provisions for NTE. Because the NTE control area, test procedures, and associated emission standards in the proposed regulation are identical to the NTE requirements in the 8 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. HDDE consent decree for model years 2003 and 2004, CARB expected the settling manufacturers to be in full compliance with its NTE standards prior to the effective date of the CARB NTE rule. 2. Euro III European Stationary Cycle (ESC) Test Procedure The Euro III European Stationary Cycle (ESC) test cycle, defined in CFR §86.1360-2007 as the “supplemental steady state test”, consists of 13 operating modes (of differing specified speed and power conditions), primarily representing the typical highway cruise operating conditions of heavyduty diesel vehicles. During the test cycle, the engine is initially operated at idle, then through a defined sequence of 12 modes at various speeds and engine loads. The test modes are at three different operational engine speeds and at 25%, 50%, 75%, and 100% of maximum load. The engine is operated for two minutes at each mode, except idle. Manufacturers are required to show compliance with the following: -Average Allowable Emission Limits During each mode of operation of the ESC test, the concentration of the gaseous pollutants is measured. The weighted average emissions for each pollutant, as calculated according to this steady-state test procedure, must not be greater than 1.0 times the Federal Test Procedure emission standard which is 2.5 gram per brake horsepower (g/bhp-hr) hour for non-methane hydrocarbons (NMHC) plus NOx for 2005 and subsequent model year engines. A single, particulate matter measurement is made of the entire 13 modes at the end of the test. -Maximum Allowable Emission Limits Maximum allowable emission limits are determined from the 12 non-idle test points of the ESC tests. The maximum allowable emission limit at any set of speed and load conditions between the test points is determined by using a four-point interpolation procedure. Emissions of gaseous pollutants at any point within the maximum allowable emission limit operational zone must not exceed the limit as determined by interpolation. Maximum allowable emission limits only apply to gaseous pollutants and do not apply to particulate matter. A more detailed description of CARB’s NTE requirements can be found at CARB’s website, generally, at http://www.arb.ca.gov/homepage.htm. See also the EPA’s description of these test procedures in its proposal, 65 Fed. Reg. 59895 (October 6, 2000). 9 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. A more detailed explanation of the proposed amendments follows. 10 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. 7:27-26.1 Definitions The Department proposes to add and amend definitions to define terms used in the new rules, including diesel engine, heavy-duty diesel engine, heavy-duty engine, heavy-duty motor vehicle, OTC-LEV program, OTC-LEV program control system, OTC-LEV program engine, OTC-LEV program vehicle, ultra-small volume manufacturer, and urban bus. Additionally, the Department proposes to amend definitions already in subchapter 26 for stylistic purposes, in order to provide greater clarity. 7:27-26.2 Applicability The Department proposes to amend N.J.A.C. 7:27-26.2(a), (c), and (d) and to add a new subsection at N.J.A.C. 7:27-26.2(e) to clarify which provisions of subchapter 26 apply to the OTCLEV program, and which apply to the proposed heavy-duty diesel new engine standards. 7:27-26.3 Prohibitions; 7:27-26.4 Emission certification standards; and 7:27-26.5 Fleet average; and 7:27-26.7 Additional requirements The Department proposes to amend the title of these sections, only, to indicate that they only apply to the OTC-LEV program. 7:27-26.6 Enforcement The Department proposes to change the title of this section from “Enforcement” to “Reporting and New Motor Vehicle Dealer Requirements (OTC-LEV Program)” to reflect its changed content and applicability only to the OTC-LEV program. Similarly, the Department proposes deleting the provisions at N.J.A.C. 7:27-26.6(c) and (d) relating to enforcement, and proposes recodifying these provisions as a new enforcement section, applicable to both programs, at N.J.A.C. 7:27-26.11, entitled “Enforcement.” 7:27-26.8 through 26.14 11 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. These provisions are currently reserved. The Department is proposing new rules at N.J.A.C. 7:27-26.8 through 11, as described below, and will continue to reserve N.J.A.C. 7:27-26.12 through 14. 7:27-26.8 Requirements for Vehicle Transactions (New HDDE Standards Program) The Department is proposing a new rule at N.J.A.C. 7:27-26.8(a) which would provide that no one shall sell, lease, rent, import, deliver, purchase, acquire, receive or otherwise transfer in New Jersey, or offer for sale, lease, or rental in this state (or attempt or assist in any of these actions) either a 2005 or subsequent model year heavy-duty diesel engine; a new motor vehicle equipped with a 2005 or subsequent model year heavy-duty diesel engine; or a motor vehicle with a new 2005 or subsequent model year heavy-duty diesel engine which has not been certified by CARB as meeting California’s standards for new heavy-duty diesel engines. The proposed new rule at N.J.A.C. 7:2726.8(b) would create the presumption that transfer of a vehicle with less than 7,500 miles is not to the ultimate purchaser and that the transfer of a vehicle with 7,500 or more miles is to the ultimate purchaser. 7:27-26.9 Exemptions and Technology Review (New HDDE Standards Program) The Department proposes, at N.J.A.C. 7:27-26.9(a) to include a number of exemptions from the heavy-duty diesel new engine standards as follow: 1) for model years 2005 and 2006, only, a heavy-duty diesel engine manufactured by an ultra-small volume manufacturer (based on California sales) or intended for use in an urban bus; 2) an engine exempted by CARB based on its technology review; 3) a vehicle purchased out-of-state to replace a damaged or stolen vehicle; 4) a vehicle transferred by court decree; 5) an emergency vehicle; 6) a military tactical vehicle; and 7) a vehicle otherwise exempted by California Health and Safety Code, section 43656. 12 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. 7:27-26.10 Manufacturer Compliance With California Orders and Voluntary Recalls (New HDDE Standards Program) The Department proposes, at N.J.A.C. 7:27-26.10(a) and (b), new rules which would make any order, enforcement action or recall by California of the heavy-duty diesel engines and vehicles subject to this program applicable to all such engines and vehicles subject to New Jersey’s heavy-duty diesel new engine standards program, unless the manufacturer demonstrates, within 21 days of CARB’s actions, that the order, enforcement action or recall is not applicable to the engines or vehicles in question. 7:27-26.11 Enforcement The Department proposes to recodify the enforcement provisions at N.J.A.C. 7:27-26.6(c) and (d) at N.J.A.C. 7:27-26.11. These provisions would be applicable both to the OTC-LEV and the heavy-duty diesel new engine standards programs. 7:27-26.15 Incorporation by reference The Department proposes to add to the list of documents and sources which have been incorporated by reference the applicable CARB and EPA standards and regulations relating to the heavy-duty diesel new engine standards program. Social Impact Adoption of these NTE standards would aid the State in attaining and maintaining the NAAQS for ozone by reducing the in-use emissions of air contaminants from heavy-duty diesel vehicles. Diesel emissions contain NOx which, in the presence of sunlight, react with other compounds in the ambient air to form ozone and other oxidants harmful to health. Heavy-duty diesel vehicles are also significant contributors of air toxics and particulate matter (PM), specifically particulate matter which is less than 2.5 microns in diameter (PM2.5). Ground level ozone is a major public health problem in New Jersey. Studies have proven that ozone, a known respiratory irritant, has severe and debilitating effects on lung capacity and can have 13 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. detrimental effects on respiration. Even at low levels, ozone can cause average humans to experience breathing difficulty, chest pains, coughing and irritation to the nose, throat and eyes. For individuals who already experience respiratory problems or who are predisposed to respiratory ailments, these symptoms can become much more severe, forcing those individuals to alter their lifestyles to avoid unnecessary exposure. In addition, chronic ozone exposure studies performed on laboratory animals indicate that long-term exposure to ozone affects lung physiology and morphology. These studies suggest that humans exposed to ozone over prolonged periods of time can experience chronic respiratory injuries resulting in premature or accelerated aging of human lung tissue. In addition to their participation in the formation of ozone, NOx by themselves exhibit serious human health effects. Although nitric oxide (NO) itself is a relatively nonirritating gas, it is readily oxidized to nitrogen dioxide (NO2), which can damage respiratory defense mechanisms, allowing bacteria to proliferate and invade the lung tissue. NOx cause irritation to the lungs, lower resistance to respiratory infections, and contribute to the development of emphysema, bronchitis, and pneumonia. NOx also react chemically in the air to form nitric acid, which contributes to acid rain formation. The Department’s concern with PM is primarily, but not exclusively, its negative impact on human health. PM is an irritant to the lungs and respiratory system and can cause irreversible damage if inhaled into the deeper regions of the lungs. Aside from its inherent irritant effects, PM also has the ability to adsorb other harmful compounds to it, potentially creating a substance more detrimental to human health than the PM alone. These factors have caused the EPA to label PM a possible human carcinogen. Because of PM’s effects on human health, the EPA established a National Ambient Air Quality Standard (NAAQS) for Total Suspended Particulate Matter (TSPM) in 1971. In 1987, the EPA revised and redesignated the NAAQS for TSPM to a PM10 standard, referring to particles with a diameter of 10 microns or less. This redesignation reflected the need for a particulate matter standard based on particle size, since smaller particles pose the greatest health risk. (Godish, Thad. Air Quality, 2nd Ed., (Chelsea, Michigan: Lewis Publishers). Unlike the larger particles, PM10 cannot be removed by the human respiratory system's filtering mechanisms prior to respiration and 14 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. inhalation to the deepest regions of the lungs. The PM10 becomes embedded in the alveoli of the lungs and has been correlated with increased susceptibility to lung infection and other respiratory disorders. While levels of PM are high in New Jersey, the air in this State currently does not exceed the NAAQS for PM10. However, recent studies have revealed that diesel exhaust PM is generally significantly smaller than 10 microns in diameter; in fact, 90 percent of the particles were found to be less than one micron in size. Particles of this size are considered more hazardous to human health than their larger counterparts. Based on this hazard and other new information, the EPA has added a NAAQS for PM2.5, that is, a new national health standard for particles which are 2.5 microns or less in size. While it has not yet been confirmed that any or all of New Jersey would be unable to meet a PM2.5 standard, the Department’s preliminary estimates indicate that a designation of nonattainment is likely, particularly for New Jersey’s urban areas. By addressing diesel emissions in New Jersey at this time, the State is also acting proactively to increase the likelihood that the State will be able to attain a PM2.5 standard. Current studies show that in addition to the PM itself, diesel exhaust contains several categories of air toxins. Such toxins include polycyclic aromatic hydrocarbons, nitro-aromatic compounds, nitrated hydrocarbons and nitrocyclic aromatics. Several substances within these categories are known or suspected human carcinogens (that is, agents known or suspected to cause cancer in humans). Diesel exhaust is also suspected to be a source of polychlorinated dibenzo-dioxins and -furans, both of which are known to have carcinogenic properties (Jones, Kay H., Diesel Truck Emissions, an Unrecognized Source of PCDD/PCDF Exposure in the United States. Risk Analysis, Vol. 13, #3. November 3, 1990.) In addition, the toxic effect of PM may be due to the direct irritant effects of substances which are readily adsorbed onto the surface area of the particles. Adsorbed substances of particular concern include oxides of sulfur (SOX), polycyclic aromatic hydrocarbons (PAHs), and heavy metals such as lead, cadmium, zinc and mercury. The PAHs include such compounds as benzo(a)pyrene and 1nitropyrene, which are known carcinogens. Moreover, recent evidence has indicated that the particles themselves may have intrinsic toxic and carcinogenic properties. (Health Effects Institute, A Critical 15 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Analysis of Emissions, Exposure and Effects. Health Effects Institute, Cambridge, MA. April 1995.) In addition to the irritating and intrinsic toxic and carcinogenic characteristics of the particles themselves, when the chemical compounds contained in diesel exhaust are emitted into and transported through the atmosphere, certain chemical and physical transformations occur, producing secondary compounds. These transformations can be induced by the presence of sunlight, ozone, hydroxyl radicals and/or nitrate radicals. These secondary compounds can be as, if not more, detrimental to human health as the primary components of diesel exhaust. Their presence can increase the toxicity and carcinogenicity of the primary constituents of diesel exhaust and lengthen the time the primary compounds remain in the ambient air. For example, PAHs react in the atmosphere with hydroxyl radicals in the presence of NOx to form nitro-PAHs and oxygenated nitroPAHs, which are often more mutagenic, carcinogenic and water-soluble than the parent PAHs. (Health Effects Institute, A Critical Analysis of Emissions, Exposure and Effects. Health Effects Institute, Cambridge, MA. April 1995.) By reducing emissions of NOx, PM and toxics throughout the State, such a program would generally have a beneficial and positive impact on the State’s residents by providing them with cleaner air and thus a healthier environment, particularly those who reside in areas with a high volume of diesel-powered motor vehicle traffic. Economic Impact The proposed new rules and amendments would have a primary economic impact on manufacturers of new heavy-duty diesel engines, including those who entered into the consent decrees. Since the engine manufacturers subject to the terms of the consent decrees will have already been manufacturing engines meeting these standards since 2002, the effect of the New Jersey rule would only be to assure, for any engines to be sold in this State, that they do not revert to the less stringent standards now in effect when the requirements of the consent decrees expire. (The consent decree manufacturers produce approximately 80 percent of the heavy-duty engines sold nationwide.) For those engine manufacturers not subject to the terms of the consent decrees, the New Jersey rule would require them to meet NTE standards two years earlier than they would otherwise have been 16 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. under the EPA requirements, for vehicles sold in this State. In addition, during the time frame covered by the New Jersey rule, all of the heavy-duty engine manufacturers will also be required to meet these same standards for any engines they produce for sale in California under its newly promulgated rules (and for sale in any other state which adopts California's standards). The economy of scale which will result as more and more states adopt these standards for this time period may well lessen the economic impact of New Jersey's requirements. Based on the EPA's calculations for the new federal standards, the California Air Resources Board (CARB) projects the average cost to a manufacturer of compliance with its rules to be less than $800 per engine, resulting in a lifetime reduction of 2.41 tons of NOx, at a cost of $0.17 per pound. A more detailed explanation of the cost of compliance to the engine manufacturers, based on the EPA’s calculations, is provided by CARB in its Staff Report: Initial Statement of Reasons,. This report is available at CARB’s website at: http://www.arb.ca.gov/regact/ntetest/ntetest.htm. Highlights from that explanation follow: Estimated Costs to Engine Manufacturers: CARB estimated the costs of the supplemental test procedures based on EPA's analysis for its Final Rule. The EPA's analysis not only includes costs to comply with similar supplemental test procedures, but also includes costs to reduce NOx emissions from 4.0 g/bhp-hr to NOx plus NMHC emissions of 2.5 g/bhp-hr. Because the EPA's analysis includes costs for requirements in addition to the supplemental test procedures, CARB considered the costs to be a conservative, worst case estimate and expected actual costs for compliance with the supplemental test procedures to be markedly less. All engine manufacturers are assumed to utilize multiple technologies to satisfy the test procedure requirements for 2005 and subsequent model year medium and heavy heavy-duty engines. To estimate the incremental effect of the federal FTP standards and supplemental test procedures on engine costs, the EPA determined the most likely combination of technologies necessary to meet the requirements. The technologies which are expected to be used, include combustion optimization, electronic controls, improved fuel injection, cooled exhaust gas recirculation, and variable and multiple geometry turbochargers. The only non-emission parameters affected were engine performance, fuel consumption, and life of the engine. The net result of the non-emission benefits was 17 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. a slight increase in annual costs associated with these effects. Assuming that engine manufacturers pass on the entire costs of the new test procedures to the end users, the incremental increase in per-engine price and overall lifetime operating costs have been estimated. CARB’s cost estimates, which are identical to those determined by the EPA, are presented in Table 1: 18 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Table 1 - Projected Unit Costs per Engine Medium Heavy-Duty (14,001 – 33,000 lbs. GVWR) Item Cooled EGR (high-flow) EGR durability Combustion optimization Improved fuel injection Variable geometry turbochargers Emission map testing Certification TOTAL Fixed Cost $106.00 $ 28.00 $ 57.00 $ 10.00 $ 18.00 $ 5.00 $ 9.00 $233.00 Variable Cost $249.00 $ 0.00 $ 0.00 $ 65.00 $127.00 $ 0.00 $ 0.00 $441.00 Fixed Cost $106.00 $28.00 $57.00 $10.00 $18.00 $5.00 $9.00 $233.00 Variable Cost $345.00 $0.00 $0.00 $72.00 $174.00 $0.00 $0.00 $591.00 Heavy Heavy-Duty (33,000 lbs. and greater GVWR) Item Cooled EGR (high-flow) EGR durability Combustion optimization Improved fuel injection Variable geometry turbochargers Emission map testing Certification TOTAL Source: U.S. EPA’s Final Regulatory Impact Analysis: Control of Emissions of Air Pollution from Highway HeavyDuty Engines, July 2000. Costs are in year 2000 dollars. The estimated costs are separated into incremental engine purchase price and annual operating costs. The incremental engine purchase price for new engines includes the fixed and variable costs. Fixed costs are costs associated with research and development, retooling, and certification. Variable costs are costs associated with hardware and assembly. Annual operating costs include any expected increases in maintenance and/or fuel consumption. The EPA relied on a study of the economic 19 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. impacts on heavy-duty highway engines by Accurex Environmental Corporation.1 All costs in the Accurex study were presented in year 1995 dollars, although the costs shown in the table above are in year 2000 dollars. Although hardware costs generally decline over time, the proposed test procedures will only affect model year 2005 and 2006 engines. Therefore, the resulting costs per engine per model year are as detailed in Table 2. Table 2 - Projected Lifetime Net Present Value Cost per Engine Lifetime NPV Cost $ 716.69 $ 915.35 Medium Heavy-Duty Heavy Heavy-Duty Parties affected by the rule also include purchasers of new heavy-duty diesel vehicles. Presumably some or all of the $800 average additional cost of manufacturing compliant engines would be passed on to the consumer. As CARB points out in its Staff Report, Initial Statement of Reasons, the proposed supplemental test procedures may require additional or upgraded engine accessories. As a result, the HDDEs may be more costly to manufacture, and hence heavy-duty vehicles may cost more. Due to the potential price increase for HDDEs, transportation companies may be affected. In addition, engines complying with the NTE standards are less fuel efficient, making the vehicles using these engines more costly to fuel. However, to the extent that this increased fueling expense represents part of the increased operating cost of about $4.03 to $8.62, it is not significant. Tables 3 and 4 reflect the baseline average costs for a heavy-duty diesel engine, vehicle, and the operating costs based on a 30-year lifetime and the potential increases to those costs, respectively. 1 “Benefits of Reducing Mobile Source NOx Emissions,” prepared by Accurex Environmental Corporation for U.S. EPA, March 31, 1997. The Accurex Environmental Corporation has since changed its name to Arcadis Geraghty & Miller. 20 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Table 3 - Baseline Heavy-Duty Engine and Vehicle Costs Heavy-Duty Class Medium Heavy-Duty Heavy Heavy-Duty Engine Cost $ 13,938.00 $ 24,391.00 Vehicle Cost $ 51,852.00 $108,455.00 Operating Cost $ 35,116.00 $121,422.00 Source: U.S. EPA’s Final Regulatory Impact Analysis: Control of Emissions of Air Pollution from Highway Heavy-Duty Engines, July 2000. Costs are in year 2000 dollars. Table 4 - Potential Cost Increases for Transportation Businesses Total Heavy-Duty Class Medium Heavy-Duty Heavy Heavy-Duty Increased Engine and Increased Annual Annualized Vehicle Cost (2005) $ 674.00 $ 824.00 Operating Cost $ 4.03 $ 8.62 Cost (20 year) $ 67.65 $ 86.40 Source: U.S. EPA’s Final Regulatory Impact Analysis: Control of Emissions of Air Pollution from Highway Heavy-Duty Engines, July 2000. Costs are in year 2000 dollars. However, counterbalancing the cost of compliance is the positive economic impact that these proposed amendments will have, in that the resulting air quality benefits from the implementation of the heavy-duty diesel new engine standards will reduce the substantial cost to the State and its citizens associated with air pollution. These costs include health care costs and the cost of damage to buildings, materials, crops and vegetation. Health care costs for air pollution-related illnesses in the United States are estimated to be on the order of $50 billion per year. In addition, the American Lung Association estimates that, nationally, 182 million people face health threats from ground-level ozone alone. By decreasing the public's exposure to ozone, NOx, PM2.5 and air toxics, these amendments and new rules will lessen these health care costs. Air pollutants also have a direct adverse effect on vegetation, livestock, and certain materials, such as rubber and glass. Although economic losses due to air pollution damage in these areas are difficult to quantify (since it is difficult to distinguish between natural deterioration and that which is caused by air pollutants), past estimates 21 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. have indicated that losses from material damage alone have exceeded $4 billion annually nationwide. (Godish, Thad. Air Quality, 2nd Ed., (Chelsea, Michigan: Lewis Publishers, Inc., 1991), p.207.) Environmental Impact The methodology used to calculate the air quality benefits of this proposed rulemaking was developed by CARB.2 The equation used to calculate the excess NOx emissions, if the NTE and ESC standards were not required, for the 2005 and 2006 model years is as follows: (Equation 1): Excess Emissions (tons per day) = EF x CF x (Daily VMT) x (Percent steady state) 909,091 Where: EF = The incremental NOx emission factor in grams per brake horsepower-hour (2.5 g/bhp-hr). This number was obtained by subtracting the FTP standard from the emission rate at steady-state mode. The emission rate at steady-state was provided, by one manufacturer of heavy-duty engines, as confidential information to the California ARB. CF = The conversion factor from gram per bhp-hr to grams per mile; 2.6 for heavy-duty diesel engines; from California’s Motor Vehicle Emission Factor Model – MVEI7G. Daily VMT = Total heavy-duty diesel vehicle daily miles traveled in New Jersey Percent steady state = The percent of VMT under steady-state mode. The split between steady-state mode and the urban or transient mode of driving is from the USEPA’s Defeat Device Spreadsheet model. Data in the model was derived from individual engine family defeat device response data provided to the USEPA by engine manufacturers as confidential and proprietary information. Estimation from this model resulted in a 72% steady-state mode for heavy-heavy duty vehicles. 2 CARB, 2000, “Staff Report: Initial Statement of Reasons; Public Hearing to Consider Amendments to Adopt NotTo-Exceed And Euro III European Stationary Cycle Emission Test Procedures for the 2005 and Subsequent Model Year HeavyDuty Diesel Engines” 22 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. 909,091 = Conversion factor from grams per day to tons per day Excess NOx emissions for the Philadelphia and New York Ozone Non-attainment Areas (NAAs) were calculated using the Incremental Excess NOx Emissions Due to No NTE Standard spreadsheet developed by CARB, which uses Equation 1. These results are shown in Table 5. 23 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Table 5 - Nonattainment Area HDDV VMT and Excess NOx Emissions Reduced by the Proposed Rulemaking New Jersey Portion of New Jersey Portion of Philadelphia NAA New York NAA 2005 2006 2005 2006 Calendar Year Calendar Year Calendar Year Calendar Year 1,453,657 1,473,034 2,738,279 2,767,759 0.5 0.9 0.9 1.8 HDDV Vehicle Miles Traveled (VMT) in New Jersey3 Excess NOx (in Tons per Day) The impact of ground-level ozone is primarily upon human health and well-being. These effects are discussed at length in the Social Impact section of this proposal. In addition to human health effects, studies have shown that increased ozone levels damage foliage. One of the earliest and most obvious manifestations of ozone impact on the environment is this type of damage to sensitive plants. Subsequent effects include reduced plant growth and decreased crop yield. A reduction in ambient ozone concentrations will mitigate damage to foliage, fruits, vegetables and grain. Decreased ozone levels will also result in less degradation of various man-made materials, such as rubber, plastics, dyes and paints. This degradation is caused by the oxidizing properties of ozone. However, if the photochemical production of ground-level ozone can be limited, as it will be with the implementation of the proposed amendments and new rules, this degradation will be significantly reduced. 3 NJDEP, 2000, "Proposed State Implementation Plan (SIP) Revision for the Attainment & Maintenance of the Ozone National Ambient Air Quality Standard (NAAQS): New Jersey 1996 - Actual Emission Inventory and Rate of Progress (ROP) plans for 2002, 2005 & 2007" 24 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Although ozone is well-known for its damaging effects on the environment, NOx can also independently cause significant environmental degradation. Oxides of nitrogen are the primary constituents involved in the deposition of air toxics, commonly referred to as acid rain, into lakes and coastal waters. Acid rain damages plants and trees, and injures aquatic life by acidifying lakes and streams. By adopting heavy-duty diesel new engine standards, the Department is continuing its efforts, begun with the enhanced diesel inspection and maintenance program, to decrease emissions of NOx from heavy-duty diesel vehicles into the atmosphere and benefit the environment of New Jersey. Federal Standards Analysis Executive Order No. 27 (1994) and N.J.S.A. 52:14B-1 et seq. (P.L. 1995, c. 65), require State agencies which adopt, readopt or amend State regulations that exceed any Federal standards or requirements to include in the rulemaking document a Federal Standards Analysis. The adopted new rules and amendments to N.J.A.C. 7:27-26 do exceed Federal standards for heavy-duty diesel engines sold in New Jersey. A comparison of these standards was provided in the Summary of the proposal of these new rules and amendments, which also included the policy reasons for going beyond the federal new engine standards. While it is not possible to project a precise estimate of the savings which these measures will afford the State and its residents, an increase of no more than $800 per vehicle will be more than offset by the economic benefits of complying with Clean Air Act mandates regarding attainment of the NAAQS for ozone and the actual savings related to reduced health care costs which cleaner air provides, as was discussed in the impact statements in the proposal of these new rules and Executive Order No. 27 (1994) and N.J.S.A. 52:14B-1 et seq. (P.L. 1995, c. 65), require State agencies which adopt, readopt or amend State regulations that exceed any Federal standards or requirements to include in the rulemaking document a Federal Standards Analysis. The proposed amendments to N.J.A.C. 7:27-26 do exceed Federal standards for heavy-duty diesel engines sold in New Jersey. A comparison of these standards is included in the Summary above. The policy reasons for going beyond the federal new engine standards are also discussed in the Summary. While it is not possible to project a precise estimate of the savings which these 25 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. measures will afford the State and its residents, an increase of no more than $800 per vehicle will be more than offset by the economic benefits of complying with Clean Air Act mandates regarding attainment of the NAAQS for ozone and the actual savings related to reduced health care costs which cleaner air provides, as is discussed in the impact statements, above. Jobs Impact Statement The Economic Impact statement above discusses the costs that the Department anticipates will result from the adoption of California’s standards for new heavy-duty diesel engines. Each member of the regulated community will choose its own approach or combination of approaches to defray these costs. Examples of such approaches include decreasing the rate of growth of any of the following: other business expenditures; dividends and other distributions; and compensation to management and other employees. In addition, increased compliance costs could be passed on in the form of higher prices for goods and services sold by regulated companies. More specifically, entities purchasing heavy-duty diesel vehicles might cut back on their equipment investments, or their facility improvements, or reduce their workforce. On the other hand, some jobs may be created in research and development to enhance the design of current engine models and some jobs may also be created in businesses manufacturing and distributing parts. However, because each affected entity may well choose its own approach or combination of approaches to defray the economic cost of compliance, it is not possible to estimate accurately the extent, if any, to which these proposed new rules and amendments will affect employment in New Jersey. 26 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Agriculture Industry Impact Statement Pursuant to P.L. 1998, c. 48, adopted on July 2, 1998, the Department has evaluated this rulemaking to determine the nature and extent of the impact of the proposed new rules and amendments on the agriculture industry. The proposed new rules and amendments, regarding standards for new heavy-duty diesel engines, will have no greater impact upon the agriculture industry than on any other industry in New Jersey; that is, to the extent that farmers and other participants in the agriculture industry purchase new heavy-duty diesel vehicles, they may face somewhat increased purchase costs, depending upon the extent to which the increased cost of producing NTE-compliant engines is passed on to the purchaser. In addition, they, like all other purchasers of such vehicles in New Jersey, would face an increased operation cost, as these vehicles are somewhat more costly to fuel and operate. It should be noted that "non-road" heavy-duty farming equipment is not covered by this rulemaking and only the on-road vehicles used in agriculture to, for example, transport crops and other agriculture-related materials would be covered by this rule. Regulatory Flexibility Analysis In accordance with the New Jersey Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., the Department has determined that the proposed amendments will not impose additional reporting or recordkeeping requirements on small businesses (defined in the Regulatory Flexibility Act as those with fewer than 100 employees). The proposed new rules and amendments will impose additional compliance requirements on small businesses which purchase heavy-duty diesel vehicles by prohibiting them from purchasing non-compliant heavy-duty diesel vehicles beginning with model year 2005. (There are no heavy-duty diesel engine manufacturers in New Jersey.) The cost of compliance for such small businesses would presumably not differ from the cost borne by all other affected entities; that is, the cost of manufacturing a compliant engine is not expected to exceed $800. The cost of purchasing a compliant vehicle cannot yet be determined and would depend upon how much of the increased cost of manufacture is passed on to the purchaser. Nor would small businesses need to employ professional services in order to comply with these requirements. These costs are discussed in greater detail in the Economic Impact Statement, above. 27 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. As these increased compliance costs are not expected to be excessive or to fall disproportionately on these small businesses, no provision is being made to minimize their impact. 28 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]): CHAPTER 27. SUBCHAPTER 26. NATIONAL LOW EMISSION VEHICLE PROGRAM AND HEAVY-DUTY DIESEL NEW ENGINE STANDARDS 7:27-26.1 Definitions The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. ... "Certified" means [the finding] ,in respect to a motor vehicle, motor vehicle engine or engine family, or air contaminant emission control system, having been found by the California Air Resources Board [that a motor vehicle, motor vehicle engine or engine family, or air contaminant emission control system has] to have satisfied the criteria adopted by the California Air Resources Board for the control of specified air contaminants from motor vehicles. ... "Diesel engine" means a compression ignition type of internal combustion engine. ... "Gross vehicle weight rating" or "GVWR" means the value specified by the manufacturer as the maximum design loaded weight of a single vehicle. “Heavy-duty diesel engine” means a diesel engine that is used to propel a heavy-duty motor vehicle. "Heavy-duty engine" means an engine which is used to propel a heavy-duty vehicle. “Heavy-duty motor vehicle” means a motor vehicle with a GVWR of 14,001 pounds or more. ... 29 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. "Non-methane organic gas" or "NMOG" [shall mean] means the total mass of oxygenated and non-oxygenated hydrocarbon emissions. ... "OTC-LEV program" means the program established in this subchapter at N.J.A.C. 7:27-26.1 through 7, N.J.A.C. 7:27-26.15 and 16, which regulates certain motor vehicles, certain motor vehicle engines or engine families, and/or certain air contaminant emission control systems. "OTC-LEV program control system" means an air contaminant emission control system designed for use and/or used to enable an OTC-LEV program engine or a OTC-LEV program vehicle to meet the emission standards of the OTC-LEV program. "OTC-LEV program engine" means an engine subject to the requirements of the OTC-LEV program. "OTC-LEV program vehicle" means a motor vehicle subject to the requirements of the OTC-LEV program. "Ozone Transport Commission - Low Emission Vehicle Program" or "OTC-LEV Program" means a LEV program as set forth in 40 C.F.R. 51.120(c). ... "Passenger car" or "PC" means any motor vehicle designed primarily for transportation of persons and having a design capacity of 12 or fewer persons [or less]. ... "Running changes" [mean] means modifications[,] to motor vehicle engines or air contaminant emission control systems[,] specified by the vehicle manufacturer that are to be effected by the manufacturer during vehicle production, and which are implemented to correct design defects that may result in excess emissions from the motor vehicle. ... "Type A HEV" [shall mean] means an HEV which achieves a minimum range of 60 miles over the All-Electric Range Test as defined in "California Exhaust Emission Standards and Test Procedures for 1988 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty 30 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. Vehicles" as incorporated by reference in section 1960.1(k) of Title-13, California Code of Regulations. "Type B HEV" [shall mean] means an HEV which achieves a range of 40 to 59 miles over the All-Electric Range Test as defined in "California Exhaust Emission Standards and Test Procedures for 1988 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles" as incorporated by reference in section 1960.1(k) of Title-13, California Code of Regulations. "Type C HEV" [shall mean] means an HEV which achieves a range of 0 to 39 miles over the All-Electric Range Test as defined in "California Exhaust Emission Standards and Test Procedures for 1988 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles" as incorporated by reference in section 1960.1(k) of Title-13, California Code of Regulations. ... “Ultra-small volume manufacturer” means any manufacturer with cumulative California sales of new passenger cars, light-duty trucks, medium-duty vehicles, heavy-duty vehicles, and heavy-duty engines, that total no more than 300 per model year based on the average number of vehicles and engines sold by the manufacturer in the previous three consecutive model years. “Urban bus” means a passenger-carrying vehicle powered by a heavy heavy-duty diesel engine, or of a type normally powered by a heavy heavy-duty diesel engine, with a load capacity of fifteen (15) or more passengers and intended primarily for intra-city operation, i.e., within the confines of a city or greater metropolitan area. Operation of such vehicles is characterized by short rides and frequent stops. To facilitate this type of operation, more than one set of quick-operating entrance and exit doors would normally be installed. Since fares are usually paid in cash or token, rather than purchased in advance in the form of tickets, such vehicles would normally have equipment installed for the collection of fares. Such vehicles are also typically characterized by the absence of equipment and facilities for long distance travel, e.g., restrooms, large luggage compartments, and facilities for stowing carry-on luggage. ... 31 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. 7:27-26.2 Applicability (a) N.J.A.C. 7:26.1 through 26.7, 26.11, 26.15 and 26.16 [T his subchapter] shall apply to all 1999 model year and subsequent model year motor vehicles which are passenger cars and lightduty trucks, motor vehicle engines in such motor vehicles, and air contaminant emission control systems for such motor vehicles and motor vehicle engines , otherwise referred to in this subchapter as "OTC-LEV program vehicles, engines and control systems." (b) (No change.) (c) Upon termination of the State’s participation in the NLEV Program, the provisions of N.J.A.C. 7:27-26.1 through 26.7, 26.11, 26.15 and 26.16 [of this subchapter] shall apply to OTC-LEV program vehicles, engines, and control systems. Notice of such termination shall be published in the New Jersey Register. (d) Notwithstanding (a) above, the provisions of N.J.A.C. 7:27-26.1 through 26.7, 26.11, 26.15 and 26.16 [of this subchapter] shall not apply to OTC-LEV program vehicles, engines, and control systems unless the combined number of registrations of new motor vehicles in those states and the District of Columbia, excluding New Jersey, within the OTR that have enacted legislation or adopted rules and regulations establishing and implementing a low emission vehicle program for a motor vehicle model year not later than 1999, is equal to or greater than 40 percent of the total number of registrations of new motor vehicles in all of the states and the District of Columbia within the OTR. (e) N.J.A.C. 7:27-26.1, 26.8 through 26.11, 26.15 and 26.16 shall apply to all new heavy-duty motor vehicles which are equipped with 2005 and subsequent model year heavyduty diesel engines. 7:27-26.3 Prohibitions (OTC-LEV Program) (No change in rule text) 7:27-26.4 Emission certification standards (OTC-LEV Program) (No change in rule text) 7:27-26.5 Fleet average (OTC-LEV Program) (No change in rule text) 32 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. 7:27-26.6 [Enforcement] Reporting and New Motor Vehicle Dealer Requirements (OTC-LEV Program) (a) - (b) [(c) (No change.) The Department and its representatives shall have the right to enter and inspect any site, building, equipment, or vehicle, or any portion thereof, at any time, in order to ascertain compliance or non-compliance with the Air Pollution Control Act, N.J.S.A. 26:2C-1 et seq., this subchapter, any exemption, or any order, consent order, agreement, or remedial action plan issued, approved or entered into pursuant thereto. Such right shall include, but not be limited to the right to test or sample any materials, motor vehicles or motor vehicle engines or any emissions therefrom, at the facility, to sketch or photograph any portion of the site, building, vehicles or motor vehicle engines, to copy or photograph any document or records necessary to determine such compliance or non-compliance, and to interview any employees or representatives of the owner, operator or registrant. Such right shall be absolute and shall not be conditioned upon any action by the Department, except the presentation of appropriate credentials as requested and compliance with appropriate standard safety procedures. (d) Except with respect to the fleet average requirements set forth in N.J.A.C. 7:27-26.5(a), failure to comply with any of the obligations or requirements of this subchapter shall subject the violator to an enforcement action pursuant to the provisions of N.J.S.A. 26:2C-19.] 7:27-26.7 Additional requirements (OTC-LEV Program) (No change in rule text) [7:27-26.8 through 26.14 (Reserved)] 7:27-26.8 Requirements for Vehicle Transactions (New HDDE Standards Program) (a) No person who is a resident of this State, or who operates an established place of business within this State, shall sell, lease, rent, import, deliver, purchase, acquire, receive or otherwise transfer in this state, or offer for sale, lease, or rental in this state (or attempt or assist in any of these actions) any of the following types of motor vehicles or engines that are intended primarily for use or for registration in this state, unless the manufacturer of the engine has received an Executive Order issued by the California Air Resources Board for such 33 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. engine, certifying that the engine complies with the applicable exhaust emission standards under Title 13, section 1956.8 of the California Code of Regulations, incorporated herein by reference: 1. A 2005 or subsequent model year heavy-duty diesel engine; 2. A new motor vehicle equipped with a 2005 or subsequent model year heavyduty diesel engine; or 3. A motor vehicle with a new 2005 or subsequent model year heavy-duty diesel engine. (b) For the purposes of this subchapter, it is conclusively presumed that the equitable or legal title to any motor vehicle with an odometer reading of 7,500 miles or more has been transferred to an ultimate purchaser, and that the equitable or legal title to any motor vehicle with an odometer reading of less than 7,500 miles has not been transferred to an ultimate purchaser. 7:27-26.9 Exemptions and Technology Review (New HDDE Standards Program) (a) Notwithstanding the provisions of N.J.A.C. 7:27-26.8, the requirements set forth at N.J.A.C. 7:27-26.8 through 11 shall not apply to: 1. A model year 2005 or 2006 heavy-duty diesel engine manufactured by an ultra-small volume manufacturer or intended for use in an urban bus; 2. A heavy-duty diesel engine of a model year and engine family for which CARB has determined, based upon its technology review, that compliance with its heavy-duty diesel engine standards is not required; 3. A vehicle acquired outside of New Jersey by a New Jersey resident for the purpose of replacing a vehicle registered to the resident which, while out of New Jersey, was stolen, or was damaged, or became inoperative, beyond reasonable repair; provided that such replacement vehicle is acquired within a reasonable amount of time following the time the previously owned vehicle was either stolen, damaged, or became inoperative; 34 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. 4. A vehicle transferred by inheritance, or by a decree of divorce, dissolution, or legal separation entered by a court of competent jurisdiction; 5. An emergency vehicle; 6. A military tactical vehicle or equipment; or 7. Any other vehicle exempted by the California Health and Safety Code, section 43656. 7:27-26.10 Manufacturer Compliance With California Orders and Voluntary Recalls (New HDDE Standards Program) (a) Any order or enforcement action taken by the California Air Resources Board to correct noncompliance with any heavy-duty diesel engine requirements adopted by such Board on December 8, 2000 shall be applicable to all such engines and motor vehicles subject to this subchapter that are sold, leased, or rented, offered for sale, lease, or rental, or registered in New Jersey, except where the manufacturer demonstrates to the Department’s satisfaction, within 21 days of issuance of such California Air Resources Board action, that this action is not applicable to such engines or vehicles in New Jersey. (b) Any voluntary or influenced emission-related recall campaign initiated by any manufacturer pursuant to Title 13, sections 2113 through 2121 of the California Code of Regulations shall extend to all applicable engines and motor vehicles subject to this subchapter, sold, leased, or rented, offered for sale, lease, or rental, or registered in New Jersey, except where the manufacturer demonstrates to the Department’s satisfaction, within 21 days of approval of the campaign by the California Air Resources Board, that this campaign is not applicable to such engines or vehicles in New Jersey. N.J.A.C. 7:27-26.11. Enforcement (a) The Department and its representatives shall have the right to enter and inspect any site, building, equipment, or vehicle, or any portion thereof, at any time, in order to ascertain compliance or non-compliance with the Air Pollution Control Act, N.J.S.A. 26:2C-1 35 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. et seq., this subchapter, any exemption, or any order, consent order, agreement, or remedial action plan issued, approved or entered into pursuant thereto. Such right shall include, but not be limited to the right to test or sample any materials, motor vehicles or motor vehicle engines or any emissions therefrom, at the facility, to sketch or photograph any portion of the site, building, vehicles or motor vehicle engines, to copy or photograph any document or records necessary to determine such compliance or non-compliance, and to interview any employees or representatives of the owner, operator or registrant. Such right shall be absolute and shall not be conditioned upon any action by the Department, except the presentation of appropriate credentials as requested and compliance with appropriate standard safety procedures. (b) Except with respect to the fleet average requirements set forth in N.J.A.C. 7:27-26.5(a), failure to comply with any of the obligations or requirements of this subchapter shall subject the violator to an enforcement action pursuant to the provisions of N.J.S.A. 26:2C-19. 7:27-26.12 - 14. Reserved. 7:27-26.15 Incorporation by reference (a) - (d) (No change.) (e) The following documents and sources are incorporated by reference within this subchapter: 1. - 12. (No change.) 13. "California Exhaust Emission Standards and Test Procedures for 1985 and Subsequent Model Heavy-Duty Diesel-Engines and Vehicles: adopted December 8, 2000, CARB; 14. 40 Code of Federal Regulations (C.F.R.) Part 86, Subpart A, "General Provisions for Emission Regulations for 1977 and Later Model Year New LightDuty Vehicles, Light-Duty Trucks, and Heavy-Duty Engines, and for 1985 and 36 This proposal has been filed with the Office of Administrative Law. The Office of Administrative Law will edit this proposal before publishing it in the New Jersey Register. Please refer to the July 16, 2001 New Jersey Register for the official text of the proposal. later Model Year New Gasoline-Fuel and Methanol Fueled Heavy-Duty Vehicles"; 15. 40 Code of Federal Regulations (C.F.R.) Part 86, Subpart I; “Emission Regulations for New Diesel Heavy-Duty Engines; Smoke Exhaust Test Procedure” and 16. 40 Code of Federal Regulations (C.F.R.) Part 86, Subpart N, "Emission Regulations for New Otto-Cycle and Diesel Heavy-Duty Engines; Gaseous and Particulate Exhaust Test Procedures." (f) (No change.) 7:27-26.16 Severability (No change.) 37