Cal. Code Regs. tit. 13 § 2293.5

Current through Register 2024 Notice Reg. No. 50, December 13, 2024
Section 2293.5 - Phase-in Requirements

[NOTE: The goal of this comprehensive process is to foster the introduction of new, lower polluting ADF fuels by allowing the limited sales of innovative ADFs in stages while emissions, performance, and environmental impacts testing is conducted. This testing is intended to develop the necessary real-world information to quantify the environmental and human health benefits from using new ADFs, determine whether these fuels have adverse environmental impacts relative to conventional CARB diesel, and identify any vehicle/engine performance issues such fuels may have.]

An ADF that has not been approved for commercialized sales under subsection (c) for Stage 3A fuels or subsection (d) for Stage 3B fuels may only be sold, offered for sale, or supplied for use in motor vehicles in California pursuant to an approved Executive Order (EO) for candidate ADF issued under subsection (a) for a Stage 1 pilot program or under subsection (b) for a Stage 2 ADF.

(a) Stage 1: Pilot Program.

[NOTE: The purpose of this stage is to allow limited, small fleet use of innovative fuels while requiring screening tests and assessments to quickly determine whether there will be unreasonable potential impacts on air quality, the environment and vehicular performance. Such data will help inform more extensive testing and analysis to be conducted in Stage 2. This Stage 1 is modeled after the existing ARB regulation that provides limited, fuel test program exemptions under 13 CCR 2259.]

(1) Stage 1 Application.

A person seeking a Stage 1 Executive Order (EO) for an ADF must submit an application to the Executive Officer that includes all the following information:

(A) Expected program duration, not to exceed one year except as provided in section 2293.5(a)(4) below;
(B) An estimate of the maximum number of vehicles or engines, engine certification levels, and vehicle types (e.g. urban bus, refuse hauler, line haul truck) involved in the program;
(C) The estimated mileage duration per vehicle involved in this stage;
(D) The quantity of fuel expected to be used in the pilot program, not to exceed the energy equivalent of one million gallons (approximately 35 million megajoules) of diesel fuel per year, per ADF total;
(E) The site(s) in which the testing during this stage will be conducted (including the street address, city, county, and zip code);
(F) The manner in which the distribution pumps will be labeled to ensure proper use of the test fuel and meet California's fuel labeling requirement in accordance with California Business and Professions Code, section 13480(a);
(G) The name, address, telephone number, title of the person(s) and the name of the company or organization requesting entry into a Stage 1 pilot program; and
(H) If different from the information in (G) above, the name, address, telephone number and title of the person(s) and the name of the company or organization responsible for recording and making the information specified above available to the Executive Officer and the location in which such information will be maintained.
(I) Chemical and physical properties of the candidate ADF: complete chemical speciation, Chemical Abstract Services (CAS) numbers (if available), density, energy content, vapor pressure, oxidative potential, distillation curve, log Kow (water-octanol partition coefficient), and Henry's law coefficient.
(J) Environmental information about the ADF: Material Safety Data Sheet(s) (MSDS) for all components of the candidate ADF, production process diagram, identification of potential human health or environmental effects, lifecycle flow diagram (including all stages of the process-raw material extraction, manufacturing, distribution, use and disposal including all intervening transportation steps), and potential release scenarios during production (including by-products), transportation and use.
(K) A statement whether the fuel will be blended with diesel, whether it can be used as a neat fuel, or whether it can be used either way.
(L) Plan for commercialization under this regulation.
(M) Emissions testing completed on criteria pollutants.
(N) Attestation that the vehicles to be used in the pilot program are owned by the applicant or the applicant has received written consent from their owners.
(O) The vehicle identification number (VIN) of each vehicle participating in the pilot program, if known.
(P) Affirmative statement that the owner(s) of all vehicles to be used in the applicant's pilot program are aware of any possible warranty issues that may arise from the use of the candidate ADF or candidate ADF/CARB diesel blend in their engines.
(Q) One of the following:
1. A declaration that a fuel standard has been approved for the ADF pursuant to Chapter 14 of the Business and Professions Code (section 13400 et seq.); or if no such standard exists,
2. A copy of the developmental fuel variance application that the applicant has submitted to the California Department of Food and Agriculture pursuant to Business and Professions Code section 13405, proof of its approval, and a declaration that:
a. The requirements of Business and Professions Code sections 12001- 13800, other than those pertaining to fuel quality, have been met, and
b. The California Department of Food and Agriculture received a copy of the application required to be submitted under 13 CCR 2293.5.
(R) Proof that the candidate fuel complies with the U.S. Environmental Protection Agency requirements at 40 Code of Federal Regulations part 79.
(S) It is the responsibility of the applicant to identify any specific portion of the information submitted above as trade secret. Any such trade secret information identified by the applicant shall be treated pursuant to 17 CCR 91000-91022 and the California Public Records Act (Government Code section 6250 et seq.).
(2) Stage 1 Application Completeness Determination.
(A) After receiving a pilot program application, the Executive Officer shall advise the applicant in writing within 30 business days either that the application is complete or that specified additional information is required to make it complete.
(B) After receiving the additional information required under (A), the Executive Officer shall advise the applicant in writing within 15 business days either that the application is complete or that specified additional information is still required to make it complete.
(C) If additional information is required and not received within 60 business days the application will be deemed incomplete.
(3) Public Comment and Final Action on a Stage 1 Application.
(A) After deeming an application complete, the Executive Officer shall post the application on ARB's internet web site for 30 business days for public comments. Only comments related to potential factual or methodological errors or the candidate ADF's impacts to public health or the environment may be considered by the Executive Officer. Within 30 business days, the applicant shall either make revisions to its application and submit those revisions to the Executive Officer, or submit a detailed written response to the Executive Officer explaining why no revisions are necessary.
(B) Within 30 business days of receiving the applicant's response to the public comments under (A), the Executive Officer shall either approve or disapprove the pilot program. The Executive Officer shall notify the applicant of his/her decision in writing and provide, if the application is denied, the reasons for the denial.
(C) The Executive Officer shall disapprove a proposed pilot program if he/she determines the use of the candidate ADF, under the terms and conditions of the pilot program as proposed, poses substantial risk to the community in which the pilot program is proposed to be conducted, presents risks that substantially outweigh the putative benefits of using the candidate ADF, or may cause a significant adverse impact on the environment.
(D) No approval of a pilot program shall be effective without an approved Executive Order (EO) executed between the Executive Officer and the applicant(s). The EO shall include terms and conditions that the applicant must meet in order to provide the candidate ADF fuel in California during the term of the EO. The terms and conditions shall be based on the information specified in section 2293.5(a) above, as well as the following:
1. Any additional information the Executive Officer determines is necessary to fill in data gaps that may have been identified during the application process;
2. Additional toxicity and other testing the Executive Officer determines is necessary and appropriate to better characterize any substance in the candidate ADF;
3. Evidence of substantial progress in working in good faith with the original equipment/engine manufacturers of the engines involved in the EO, consensus standards organizations (e.g., ASTM), regulatory agencies, and other interested parties toward developing a consensus set of fuel specifications for the candidate ADF; and
4. The use of adequate controls to ensure appropriate fuel quality and performance in consideration of vehicle performance, impact on the environment and fuel production. Appropriate controls include but are not limited to the use of interim fuel specifications and consensus standards.
(4) Operation under a Stage 1 EO.
(A) For the duration of the EO, the applicant must meet all the terms and conditions specified therein;
(B) The Executive Officer may terminate or modify an EO, with 30 business days written notice to the applicant(s), for failure of the applicant(s) to comply with any of the terms and conditions of the EO, failure to comply with any other applicable provision in this subarticle, or for good cause. Good cause includes, but is not limited to, a determination by the Executive Officer that the information submitted in the application was inaccurate or incomplete or that the use of the ADF, under the terms and conditions of the approved pilot program, may pose an unacceptable risk to the community in which the pilot program is being conducted, or its risks substantially outweigh the putative benefits of using the candidate ADF;
(C) The Executive Officer shall not revoke or modify an approved Stage 1 EO without first affording the applicant an opportunity for a hearing in accordance with CCR, title 17, division 3, chapter 1, subchapter 1.25, article 2 (commencing with Section 60055.1). The Executive Officer may temporarily suspend an EO without a hearing and prior to revocation or modification if the Executive Officer determines that continued operations under the EO may adversely affect human health;
(D) In the event an applicant cannot complete an approved pilot program within the allotted time, the applicant(s) may request a six month extension, renewable up to three times; and
(E) Upon successful completion of the pilot program, the applicant(s) may submit an application for a Stage 2 EO, as specified in section 2293.5(b) below.
(b) Stage 2: Development of Fuel Specification.

[NOTE: The purpose of this stage is to allow limited but expanded fleet use of an ADF that has successfully undergone the Stage 1 pilot program. Stage 2 candidate ADFs undergo additional emissions and performance testing to better characterize potential impacts on air quality, the environment and vehicular performance. This testing and assessment will be conducted pursuant to a formal multimedia evaluation leading to the development of a fuel specification, as appropriate. Further, the multimedia evaluation will be the basis for determining whether the candidate ADF has potential adverse emissions impacts. The determination of potential adverse emissions impacts determines whether the candidate ADF may proceed to Stage 3A or Stage 3B.]

A person who has successfully completed a Stage 1 pilot program for a candidate ADF under subsection (a) may apply for a Stage 2 EO for that candidate ADF.

(1) Stage 2 Application.

An applicant for Stage 2 must submit an application to the Executive Officer that includes all the following information:

(A) Planned duration for this stage, not to exceed one year, renewable up to four times or as otherwise provided in section 2293.5(b)(4);
(B) An estimate of the maximum number of vehicles or engines, engine certification levels, and vehicle types (e.g. urban bus, refuse hauler, line haul truck) involved in this stage, along with a description of the emissions control technology;
(C) The estimated mileage duration per vehicle involved in this stage;
(D) The quantity of the candidate ADF fuel expected to be used in this stage, not to exceed the energy equivalent of 30 million gallons of diesel fuel per year;
(E) The site(s) in which the testing during this stage will be conducted (including the street address, city, county, and zip code);
(F) Any changes or updates to the information submitted under section 2293.5(a)(1)(F)-(R) to reflect the expanded scope of vehicles, locations, fuel volume, timeframe, and other aspects of operation under Stage 2. For each of these items, the applicant must specify whether there has been no change or update, or if there has been a change or update, what that change or update is; and
(G) Identification of the test lab and principal investigator, including his/her curriculum vitae, who will be conducting the multimedia evaluation for the candidate ADF.
(H) It is the responsibility of the applicant to identify any specific portion of the information submitted above as trade secret. Any such trade secret information identified by the applicant shall be treated pursuant to 17 CCR 91000-91022 and the California Public Records Act (Government Code section 6250 et seq.).
(2) Stage 2 Application Completeness Determination
(A) After receiving a Stage 2 application, the Executive Officer shall advise the applicant in writing within 30 business days either that the application is complete or that specified additional information is required to make it complete;
(B) After receiving the additional information required under (A), the Executive Officer shall advise the applicant in writing within 15 business days either that the application is now complete or that specified additional information is still required to make it complete.
(C) If additional information is required and not received within 60 business days the application will be deemed incomplete.
(3) Public Comment and Final Action on a Stage 2 Application
(A) After deeming an application complete, the Executive Officer shall post the application on ARB's internet web site for 30 business days for public comments. Only comments related to potential factual or methodological errors or information regarding vehicle performance or the candidate ADF's impacts to public health or the environment may be considered by the Executive Officer. Within 30 business days, the applicant shall either make revisions to its application and submit those revisions to the Executive Officer, or submit a detailed written response to the Executive Officer explaining why no revisions are necessary;
(B) Within 30 business days of receiving the applicant's response to the public comments under (A), the Executive Officer shall either approve or disapprove the Stage 2 application. The Executive Officer shall notify the applicant of his/her decision in writing and provide, if the application is denied, the reasons for the denial;
(C) The Executive Officer shall disapprove a proposed pilot program if he/she determines the use of the ADF, under the terms and conditions of the Stage 2 program as proposed, poses substantial risk to the community(ies) in which the program is proposed to be conducted, presents risks that substantially outweigh the putative benefits of using the ADF, or may cause a significant adverse impact on the environment;
(D) No approval of a Stage 2 program shall be effective without an approved Executive Order (EO) executed between the Executive Officer and the applicant(s). The EO shall include terms and conditions that the applicant must meet in order to provide the ADF fuel in California during the term of the EO. The terms and conditions shall be based on the information specified in section 2293.5(b)(1) above, as well as the following:
1. Any additional information requested in writing by the Executive Officer to fill in data gaps that may have been identified during the application process;
2. Additional toxicity and other testing the Executive Officer determines is necessary and appropriate to better characterize any substance in the ADF;
3. Substantial progress in working in good faith with the original equipment/engine manufacturers of the engines involved in the EO, consensus standards organizations (e.g., ASTM), regulatory agencies, and other interested parties toward developing a consensus set of fuel specifications for the ADF. These efforts must culminate in adoption of consensus standards by the end of the Stage 2 EO.
(4) Operation under a Stage 2 EO
(A) For the duration of the EO, the applicant must meet all the terms and conditions specified therein;
(B) The Executive Officer may terminate or modify an EO, with 30 business days written notice to the applicant(s), for failure of the applicant(s) to comply with any of the terms and conditions of the EO, failure to comply with any other applicable provision in this subarticle, or for good cause. Good cause includes, but is not limited to, a determination by the Executive Officer that the information submitted in the application was inaccurate or incomplete or that the use of the ADF, under the terms and conditions of the approved Stage 2 program, may pose an unacceptable risk to the community in which the Stage 2 program is being conducted, or its risks substantially outweigh the putative benefits of using the ADF;
(C) In the event an applicant cannot complete an approved Stage 2 program within the allotted time, the applicant(s) may request a 1 year extension, renewable up to four times. The Executive Officer may provide additional extensions due to delays in completion of a multimedia evaluation, adoption of the applicable consensus standards, or for other good cause;
(D) Upon successful completion of the Stage 2 program, the applicant(s) may sell, offer for sale, or supply an ADF intended for use in motor vehicles in California pursuant to either Stage 3A or 3B, whichever applies, as specified in section 2293.5(c) or (d) below.
(5) Multimedia Evaluation and Determination of Potential Adverse Impacts
(A) All applicants with an approved Stage 2 EO shall conduct a multimedia evaluation of the ADF that complies with Health and Safety Code section 43830.8 and all requirements of this subsection. Each applicant shall;
1. Submit and obtain Executive Officer approval of a Tier I Report that provides all available background information on the fuel and identifies potential adverse impacts to public health or the environment, key risk assessment elements, and key knowledge gaps pertaining to impacts from the production, use, or disposal of the fuel;
2. If one or more key knowledge gaps are identified in the Tier I Report, submit and obtain Executive Officer approval of a Tier II Report that provides the risk assessment design, including experimental test protocols and documents, to address the key knowledge gaps;
3. Complete the risk assessment and submit and obtain Executive Officer approval of a Tier III Report that includes the results of the assessment, an analysis of any significant adverse impacts on public health or the environment, and conclusions; and
4. Provide any additional information or analysis that the Executive Officer determines is necessary to address comments or concerns raised by the multimedia working group comprised of agencies described in Health and Safety Code section 43830.8(g), by peer reviewers asked to review the multimedia evaluation, or by the California Environmental Policy Council established pursuant to the Public Resources Code section 71017(b).
(B) The multimedia evaluation shall identify and evaluate any significant adverse impact on public health or the environment, including air, water, or soil, that may result from the production, use, or disposal of the ADF, under Stage 2, Stage 3A, or Stage 3B, relative to an appropriate baseline identified by the Executive Officer in consultation with the multimedia working group. The evaluation shall address all impacts listed in Health and Safety Code section 43830.8(c); any other impacts specified by the Executive Officer; and any additional impacts identified during preparation of Tier I, Tier II, or Tier III reports.
(C) In addition to determining any significant impacts, the multimedia assessment shall also include an evaluation of potential strategies that may reduce or eliminate each of the significant impacts identified;
(D) If the findings from the multimedia evaluation show a statistically significant increase in any criteria, toxic, or other air pollutant from the use of an ADF in motor vehicles, compared to the baseline, the Executive Officer shall determine whether there is a level below which the use of a candidate ADF or a candidate ADF blend would avoid a detrimental impact on ambient air quality.
(6) Completion of Stage 2

An applicant operating under a Stage 2 EO may qualify for commercial sales of the ADF under section 2293.5(c) for Stage 3A or section 2293.5(d) for Stage 3B if the Executive Officer determines in writing that the applicant has successfully completed the requirements of Stage 2.

(A) To successfully complete Stage 2, the applicant must meet all the following requirements:
1. Comply with all requirements specified in the approved Stage 2 EO;
2. Adopt consensus standards applicable to the ADF;
3. Obtain approval of at least 75 percent of compression ignition engine original equipment manufacturers for which the ADF is expected or intended to be used. Such approval must represent approval of the ADF blend levels expected or intended to be used in those engines;
4. Identify appropriate fuel specifications or in-use requirements for the ADF identified as part of the multimedia evaluation conducted according to the provisions of this article;
5. Upon request, provide additional information or data necessary for ARB to review the potential environmental effects of Stage 3A or 3B commercial sales that may be required under the California Environmental Quality Act (Public Resources Code section 21000 et seq.) or other laws; and
6. Obtain a written determination by the Executive Officer that all the above requirements have been met.
(B) In the event the Executive Officer makes a determination of potential adverse emissions impacts under section 2293.5(b)(5)(D), the Executive Officer shall post notice on the ARB website of his/her intent to initiate an evaluation to determine whether the use of a candidate ADF or candidate ADF blend would lead to adverse emissions impacts considering the existence of offsetting factors, and if such impacts are found, develop and establish appropriate fuel specifications and/or in-use requirements to be added to section 2293.6 or 2293.7, as appropriate.
(c) Stage 3 Evaluation: Commercial Sales

In the event the Executive Officer determines that a candidate ADF or candidate ADF blend has potential adverse emissions impacts, the Executive Officer shall direct ARB staff to conduct an evaluation to consider the effects of offsetting factors and the resultant impact that the use of the candidate ADF will have on criteria, toxic, or other air pollutants and resultant effect on air quality.

(1) If the Executive Officer determines that no adverse emissions impact will occur as a result of the use of a candidate ADF or candidate ADF blend when considering offsetting factors, the candidate ADF or ADF blend shall then be subject to the provisions of Stage 3B in section 2293.5(d).
(2) If the Executive Officer finds that after considering offsetting factors, the use of a candidate ADF or candidate ADF blend would result in adverse emissions impacts, then the fuel must be considered under Stage 3A. In that case, the Executive Officer shall determine conditions of ADF use including, but not limited to, appropriate fuel specifications and/or in-use requirements to preclude adverse emission impacts. Conditions of use may consider, but are not limited to, the effect of ADF feedstocks, the region of ADF use, or any seasonal effects relative to emissions impacts on air quality mandates.
(3) If the Executive Officer finds appropriate fuel specifications and/or in-use requirements that would eliminate or reduce the adverse air quality impacts found in 2293.5(c)(2), then the Executive Officer will direct staff to initiate a rulemaking process to establish those standards under this subarticle.
(d) Stage 3B: Commercial Sales Not Subject to In-use Requirements

If the Executive Officer determines that there are no potential adverse emissions impacts in accordance with 2293.5(b)(5)(D), or that there would be no adverse emissions impacts in accordance with 2293.5(c)(1) for a candidate ADF or candidate ADF blend, no in-use requirements are required for the fuel. The applicant may apply to the Executive Officer, and the Executive Officer may approve, a Stage 3B EO for commercial sales of the ADF or the ADF blend without amendment of this subarticle. Stage 3B activities are subject to the reporting and recordkeeping provisions specified in section 2293.8 and any conditions or limitations that the Executive Officer includes in the Stage 3B EO to ensure commercial sales meet any applicable standards and avoid any significant impact to public health or the environment.

Cal. Code Regs. Tit. 13, § 2293.5

1. New section filed 2-15-95; operative 2-15-95 pursuant to Government Code Section 11343.4(d) (Register 95, No. 7).
2. Renumbering of former section 2293.5 to new section 2295 and new section 2293.5 filed 11-16-2015; operative 1-1-2016 (Register 2015, No. 47).

Note: Authority cited: Sections 39600, 39601, 43013, 43018 and 43101, Health and Safety Code; and Western Oil and Gas Ass'n. v. Orange County Air Pollution Control District, 14 Cal. 3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 39000, 39001, 39002, 39003, 39010, 39500, 39515, 40000, 43000, 43016, 43018, 43026, 43101, 43830.8, and 43865, Health and Safety Code: and Western Oil and Gas Ass'n. v. Orange County Air Pollution Control District, 14 Cal. 3d 411, 121 Cal.Rptr. 249 (1975).

1. New section filed 2-15-95; operative 2-15-95 pursuant to Government Code section 11343.4(d)(Register 95, No. 7).
2. Renumbering of former section 2293.5 to new section 2295 and new section 2293.5 filed 11-16-2015; operative 1/1/2016 (Register 2015, No. 47).