Section 2478.7 - Alternative Compliance Plan(a) A Locomotive Operator may apply to the Executive Officer to use an Alternative Compliance Plan (ACP). An approved ACP shall replace the requirements of section 2478.4, section 2478.5, or both, for the duration of the ACP. An approved ACP shall be valid for a Five-Year Verification Period, subject to subsection (i), and shall apply to the Locomotive Operator's entire Locomotive fleet Operating in California.(b) The ACP shall reduce PM, NOx, and GHG emissions in California in amounts equivalent to or greater than the reductions that would have been achieved during the Five-Year Verification Period by the Locomotive Operator directly complying with the requirements set forth in section 2478.4, section 2478.5, or both (as applicable), using the assumptions listed below. (1) All ACPs shall assume: (A) Annual Locomotive Usage is calculated using the immediately preceding Calendar Year's data, and(B) The annual activity estimated in subsection (b)(1)(A) is multiplied by five, representing the number of years in the Five-Year Verification Period. If the Five-Year Verification Period is less than five years, use the pro-rated number of years.(2) ACPs intended to replace the requirements in section 2478.4 shall assume: (A) Per the Spending Account Funding Requirement calculated under the Spending Account Requirements in subsection 2478.4(c), all Spending Account funds would have been used to purchase, at Fair Market Value, Tier 4 Locomotives until December 31, 2028, and ZE Locomotives from January 1, 2029, onward.(B) The Tier 4 or ZE Locomotive that would have been purchased using Spending Account funds would have been introduced into use in California within one year of the sufficient accumulation of funds to purchase a Tier 4 or ZE Locomotive.(C) A Tier 4 Locomotive would Operate for 23 years prior to being removed from California service.(3) ACPs intended to replace the direct compliance requirements in section 2478.5 shall assume: (A) Beginning January 1, 2030, the Locomotive Operator's Locomotives with an Original Engine Build Date of 23 years and older would no longer be Operated in California as specified in subsection 2478.5(a).(B) Beginning January 1, 2030, any Switch, Industrial, or Passenger Locomotive Operating in California with an Original Engine Build Date of 2030 or newer would always be Operated in a ZE Configuration in California as specified in subsection 2478.5(b).(C) Beginning January 1, 2035, any Freight Line Haul Locomotive Operating in California with an Original Engine Build Date of 2035 or newer would always be Operated in a ZE Configuration in California as specified in subsection 2478.5(c).(c) ACP emission reductions for PM and NOx shall be achieved at or within three miles of an applicant's California Locomotive Operations. This subsection does not apply to ACP emission reductions for GHGs.(d) Applicants seeking approval of an ACP shall submit their applications to CARB at least six months prior to the requested start date of the ACP, following the requirements set forth in section 2478.15. The Locomotive Operator shall submit the following information in the ACP application: (1) Locomotive Operator name and contact information, including an email address and phone number.(2) Whether the ACP is meant to be used instead of direct compliance with the Spending Account, the In-Use Operational Requirements, or both.(3) The following for each Locomotive in the Locomotive fleet: (B) Original Engine Build Date.(C) If using an ACP instead of direct compliance with the Spending Account, detailed calculations and assumptions made to calculate costs and emission reductions that would have been achieved through direct compliance with the Spending Account during the Five-Year Verification Period.(D) If using an ACP instead of direct compliance with the In-Use Operational Requirements, detailed calculations and assumptions made to calculate emission reductions that would have been achieved through direct compliance with the In-Use Operational Requirements during the Five-Year Verification Period.(E) A detailed explanation of the calculations, assumptions, and information used to demonstrate that the applicant's proposed ACP emission reduction measures will achieve Quantifiable, Verifiable, and Enforceable Emission Reductions from the Locomotive Operations covered by the ACP in the amount required by subsection (b).(F) A detailed description of the proposed emission calculation methodologies, recordkeeping, annual reporting, and monitoring that the applicant plans to use to demonstrate that the emission reductions satisfy the requirements of subsection (b) throughout the Five-Year Verification Period.(G) A statement explaining whether the ACP is intended to span five years or a lesser timeframe.(H) An attestation statement pursuant to subsection 2478.15(a)(2).(e) Applicants shall submit an application payment to CARB along with their ACP application following the requirements set forth in section 2478.12.(f)Approval. The Executive Officer may approve an ACP application that satisfies the requirements for submittal only upon finding all the following: (1) The ACP application complies with the applicable requirements set forth in subsections (b), (c), and (d).(2) The ACP application provides sufficient information to accurately estimate the emission reductions required during the Five-Year Verification Period, including a detailed explanation of the information and calculations used to determine the amount of emission reductions that must be achieved by the ACP throughout the Five-Year Verification Period.(3) The ACP application provides sufficient information to verify that the applicable assumptions set forth in subsection (b) were properly applied, including a detailed explanation of the information and calculations used in applying these assumptions.(4) The ACP application demonstrates that the ACP proposed emission reduction measures will achieve reductions of PM, NOx, and GHG emissions equivalent to or greater than the level that would have been achieved by directly complying with the requirements set forth in section 2478.4 and section 2478.5 (as applicable) using the assumptions set forth in subsection (b) and demonstrates that these reductions will be Quantifiable, Verifiable, and Enforceable, including a detailed explanation of the information and calculations used to demonstrate that the emission reductions to be achieved by the ACP will satisfy the requirements of subsection (b) throughout the Five-Year Verification Period.(5) The ACP application includes an attestation statement pursuant to subsection 2478.15(a)(2).(g)Notice of Approval. Within 45 business days after the Executive Officer has received a complete application for an ACP, the Executive Officer shall issue a notice of approval if the application meets the requirements of this section. (1) The Executive Officer's approval of an ACP shall not serve as a substitute for any other approvals that may be required by the federal, state, or local government. Approval is contingent on the ACP's compliance with all applicable laws, ordinances, and regulations, including obtaining any permits or approvals necessary to undertake the activities constituting the ACP, and complying with all environmental review requirements associated with such activities.(2) If the ACP is approved, upon the start date for the ACP listed in the Executive Order approving the ACP and until expiration or revocation as described in subsection (i), the Operator shall be exempt from its regulatory obligations under the Spending Account, the In-Use Operational Requirements, or both, as indicated in the Executive Order.(h)Notice of Disapproval. Within 45 business days after the Executive Officer has received an ACP application, the Executive Officer shall issue a notice of disapproval if the application is incomplete or does not meet the requirements of this section. The Executive Officer shall summarize the application deficiencies in the notice of disapproval.(i)Expiration and Revocation. An ACP that has expired or has been revoked shall not be used for compliance with this Locomotive Regulation as of the date of expiration or revocation. (1) An approved ACP is only valid for the Five-Year Verification Period as specified in the Executive Order and shall expire after the Five-Year Verification Period.(2) An approved ACP may be revoked at any time by the Executive Officer for any of the following reasons: (A) The Locomotive Operator fails to meet any of the requirements of this section, including the submittal of a complete, accurate, and timely annual report.(B) The Locomotive Operator fails to meet any of the requirements set forth in the ACP's Executive Order, including the reductions required to be achieved by the ACP.(C) The ACP is not in compliance with approvals that may be required by the federal, state, or local government, or with applicable laws, ordinances, or regulations, or the Locomotive Operator did not obtain the permits or approvals necessary to undertake the activities constituting the ACP, or the Locomotive Operator has not complied with all environmental review requirements associated with the ACP.(D) The Locomotive Operator fails to meet any other applicable requirement of this Locomotive Regulation, including Idling, Registration, and annual Reporting Requirements.(3) If any of the circumstances listed in subsection 2478.7(i)(2)(A) through 2478.7(i)(2)(D) occur, the Locomotive Operator shall submit a notification to CARB following the requirements for submittals set forth in section 2478.15 within 15 calendar days of the date when the Locomotive Operator discovers or reasonably should have discovered that one of these circumstances has occurred.(4) CARB will provide notice of the revocation, including the date of the official revocation, to the applicant in writing at least 30 calendar days prior to the official revocation.(j)Amendment. Applicants seeking approval of an amendment to an ACP shall submit their application for proposed amendment in strikeout/underline format to the Executive Officer at least six months prior to the requested start date of the amended ACP, following the requirements set forth in section 2478.15. (1) The application for proposed amendment must include a new attestation statement pursuant to subsection 2478.15(a)(2).(2) The application for proposed amendment is subject to all requirements and conditions set forth in this section.(3) The application must include an application payment following the requirements set forth in section 2478.12.(4) The end-date of any amended ACP remains the same as the original.(k)Reapplication. If an applicant would like to continue to use an ACP for another Five-Year Verification Period without any gaps in time between the expiration of the previous Five-Year Verification Period and the start date of the subsequent Five-Year Verification Period, they shall submit a reapplication and application payment as set forth in section 2478.12 for the ACP no more than one year prior to, but at least six months prior to, the expiration of the current ACP. The requirements set forth in section 2478.7 apply to reapplications. A reapplication shall use the Operator's Locomotive fleet at the time of the reapplication for all calculations required for the reapplication.(l)Annual ACP Reports. Locomotive Operators using an approved ACP shall annually report any activity under the approved ACP. These reports shall be submitted no later than July 1 of each year throughout the Five-Year Verification Period pursuant to the applicable requirements specified in section 2478.11.(m)Public Transparency. CARB will upload all approved ACP applications, reapplications, and amendments to the CARB "Reducing Rail Emissions in California" webpage for public access. CARB shall provide notice on its webpage of any disapproved ACP application or revoked ACP. Applicants may identify specific portions of an application as confidential and if so, CARB shall keep such information confidential to the extent permitted under California's Public Records Act, Government Code, section 7920.000 et seq.Cal. Code Regs. Tit. 13, § 2478.7
Note: Authority cited: Sections 38560, 39600, 39601, 39658, 39659, 39666, 41511, 43013 and 43018, Health and Safety Code. Reference: Sections 39650, 39659, 41511, 43013 and 43018, Health and Safety Code.
1. New section filed 10-27-2023; operative 1/1/2024 (Register 2023, No. 43).