APPENDIX G - CARB Reporting Requirements for Prime Contractors.pdf

APPENDIX G

CARB Reporting Requirements

2759.000 / 15551143.1

EXHIBIT ‘G’

REQUIREMENTS FOR OFF-ROAD DIESEL VEHICLES

The California Air Resources Board ("CARB") has imposed new requirements on prime contractors to participate in compliance reporting for the fleets of off-road diesel vehicles used on its construction projects. CARB originally enacted the regulations in 2008 to govern the phase out of certain diesel-powered engines utilized in off-road vehicles.

These new regulations, along with adding reporting requirement for prime contractors, impose requirements on use of renewable diesel, make further changes to the phase-out requirements based upon fleet-size, provide guidance on use of renewable diesel, and offer incentive programs for compliance requirements based upon utilization of zero-emission technology.

Contractor and its subcontractors shall review the entirety of Sections 2449, 2449.1, and 2449. 2 contained within Chapter 9, Article 4.8, Title 13 of the California Code of Regulations to familiarize itself and ensure their compliance.

Below is a breakdown of the new requirements.

VEHICLES SUBJECT TO COMPLIANCE REPORTING:

• Any vehicles with a diesel fueled off-road compression-ignition engine with maximum power of 25 HP or greater provided that the vehicle cannot be registered and driven safely on-road or was not designed to be driven on-road, even if it has been modified so that it can be driven safely on-road.

• Workover rigs

• Cranes and water-well drilling rigs that contain an auxiliary engine with a rated break of 50hp or greater

• Two engine vehicles, designed for off- or on-road, where the second auxiliary engine IS diesel powered with 50hp or greater

UTILIZATION OF RENEWABLE DIESEL:

• Effective January 1, 2024, all fleets subject to this regulation are required to procure R99 and/or R100 renewable diesel for use in vehicles governed by these regulations, subject to certain exceptions:

o Any fleet or potion of a fleet designated as a captive attainment area fleet;

o Any fleet or fleet portion comprised entirely of vehicles with Tier 4 final engines, model year 2010 or newer on-road engines, or zero-emission vehicles o Any fleets operating in a location where average air temperatures for the month of January are below 20 degrees Fahrenheit. NOTE – this exception only applies for November – February

• If a portion of a fleet is unable to procure R99 or R100 renewable diesel through normal refueling methods, then it is excused with compliance from the requirement, subject to appropriate documentation memorializing:

o the fleet's normal fueling methods, a description of the efforts made to procure R99 and/or R100 renewable diesel and documentation regarding such inability to procure it.

NEW TIER-BASED PHASE-OUT REQUIREMENTS:

• For Large Fleets (defined as a fleet with a total max hp > 5,000 hp) o Effective January 1, 2024, a large fleet shall not operate any vehicle with a

Tier 0 engineer or a model year 1994 or earlier on-road engine o Effective January 1, 2026, a large fleet shall not operate any vehicle with a

Tier 1 engineer or a model year 1999 or earlier on-road engine o Effective January 1, 2028, a large fleet shall not operate any vehicle with a

Tier 2 engineer or a model year 1993 or earlier on-road engine

• For Medium Fleets (defined as a fleet with total max hp between 2,500 and 5,000 hp) o Effective January 1, 2026, a large fleet shall not operate any vehicle with a Tier 0 engineer or a model year 1994 or earlier on-road engine o Effective January 1, 2028, a large fleet shall not operate any vehicle with a Tier 1 engineer or a model year 1999 or earlier on-road engine o Effective January 1, 2030, a large fleet shall not operate any vehicle with a

• For Small Fleets (defined as a fleet with total max hp less than 2,500 hp) o Effective January 1, 2028, a large fleet shall not operate any vehicle with a

Tier 0 engineer or a model year 1994 or earlier on-road engine o Effective January 1, 2030, a large fleet shall not operate any vehicle with a Tier 1 engineer or a model year 1999 or earlier on-road engine o Effective January 1, 2032, a large fleet shall not operate any vehicle with a

• Delay of Tier Phase-Outs for Addition of Zero-Emission Vehicles o For each zero-emission vehicle a fleet adds on or after January 1, 2024, the fleet may delay the Tier phase-out requirement for one existing vehicle with a Tier 1 or Tier 2 engine in its fleet for two years, subject to compliance with the requirements of the zero-emission vehicle

COMPLIANCE REPORTING REQUIREMENTS:

• Subcontractor using such vehicles must provide to Prime Contractor Certificates of Reported Compliance between March 1 and June 1 of each year.

• The Prime Contractor has an ongoing requirement to obtain new valid Certificates of Reported Compliance between March 1 and June 1 of each year for contracts with fleets with ongoing performance

• Cannot enter into a contract with a fleet that does not have a valid Certificate of Reported Compliance with the CARB

• The Prime Contractor must retain all relevant certificates of compliance for three

(3) years after completion of the Project. These records must be provided to CARB within five (5) business days of their request for these records

• Prime Contractors have an obligation to report instances of non-compliance to the CARB

PROJECT SIGNAGE:

• Prime contractor is obligated to post signage regarding the In-Use Off-Road Regulation if vehicles subject to this regulation are operating on the project for eight (8) calendar days or more.

• Signage must be posted in a conspicuous place

• Signage must include, verbatim:

Who does the In-Use Off-Road Regulation Apply to?

The In-Use Off-Road Diesel-Fueled Fleets Regulation (Off-Road Regulation) applies to all self-propelled off-road diesel vehicles 25 horsepower or greater and most two-engine vehicles (except on-road two-engine sweepers) owned or operated in California. This includes vehicles that are rented or leased (rental or leased fleets).”

In-Use Off-Road Regulation Requirements

Idling Limit: Vehicles cannot idle longer than five minutes. There are exceptions for vehicles that need to idle to perform work.

Labeling: Vehicles must be labeled with a CARB assigned equipment identification number (EIN). The EIN shall be white on a red background, unless the vehicle is part of a captive attainment area fleet, in which case the EIN shall be white on a green background.

The EIN shall be located in clear view on both sides of the outside of the vehicle.

How to Report Observed Noncompliance

If you have information regarding possible violations of the In-use Off-road Diesel Regulation, fill out a complaint form at https://calepacomplaints.secure.force.com/complaints/Complaint, or email dieselcomplaints@arb.ca.gov the following information:

1. The name of the party that is responsible for the vehicle that was observed to be noncompliant;

2. The Business’s name;

3. The job site location (including address, city, and Zip, or coordinates);

4. The following information for the vehicle you observed to be noncompliant:

a. EIN, if observed;

b. A description of the vehicle type if the EIN is unknown; and

c. Photos of the vehicle, where possible; and

5. A description of the noncompliance you observed.”

“For more information on the Off-Road Regulation, including Fact Sheets, Frequently Asked Questions (FAQs), and DOORS User Guides, please visit the Off-Road Zone at http://arb.ca.gov/offroadzone.”

PENALTIES:

• Failure to comply with the reporting requirements is subject to civil and/or criminal penalties

• For MSA Work Agreements:

• Requirements for Off-Road Vehicles Used by

Subcontractor. Subcontractor warrants and represents that it has reviewed and is familiar with the requirements of the "Regulation for Off-

Road Diesel-Fueled Vehicles" contained in Sections

2449, 2449.1, and 2449. 2 in Chapter 9, Article

4.8, Title 13 of the California Code of Regulations and that (a) all diesel vehicles utilized for performance of the Work will comply with such requirements; and (b) Subcontractor will provide all required documentation. An information sheet summarizing the new requirements, including the use of renewable diesel for vehicles covered by this regulation, and required phase-out schedules of certain types of diesel engines, is included with http://arb.ca.gov/offroadzone this Agreement as Exhibit A. Prior to commencement of Subcontractor's Work on the Project, Subcontractor will furnish Contractor with all applicable certificates of reported compliance with the California Air Resource Board for the vehicles in its fleet and intended for use on the Project.

For each year of the term of this Agreement, until the earlier of its expiration or termination, Subcontractor agrees to furnish Contractor with its valid certificates of reported compliance with the

California Air Resource Board on or before May 15th of the then current year. Subcontractor's failure to provide the certificates of compliance as required by this section shall constitute a breach of this Agreement as defined in Paragraph 17 and

Subcontractor agrees to indemnify, defend and hold harmless Contractor from any penalties incurred as a result of its failure to comply with these requirements.

• For Owner-Contractor Agreement :

• 16. REQUIREMENTS FOR OFF-ROAD VEHICLES. Contractor acknowledges and represents it is familiar with the requirements of the "Regulation for Off-Road

Diesel-Fueled Vehicles" promulgated in Sections

2449, 2449.1, and 2449. 2 contained within Chapter

9, Article 4.8, Title 13 of the California Code of

Regulations, and shall for itself, and for any subcontractors and/or other entities retained for performance of the Work, ensure compliance with the same, to include, but not limited to, appropriate use of renewable diesel fuel for vehicles utilized on the Project, phase out of non-compliant diesel engines utilized on the Project, and collecting all required certificates of compliance and maintaining records of such certificates in accordance with the regulation. An information sheet summarizing the new requirements, including the use of renewable diesel for vehicles covered by this regulation, and required phase-out schedules of certain types of diesel engines, is included with this Agreement as

Exhibit A. Contractor's failure to ensure compliance with these requirements for itself and for its subcontractors and others retained to perform Work for the Project shall constitute a breach of this Agreement as defined in Paragraph 17 and Subcontractor agrees to indemnify, defend and hold harmless Contractor from any penalties incurred as a result of its failure to comply with these requirements.