California Code of Regulations
Title 13 - Motor Vehicles
Division 3 - Air Resources Board
Chapter 9 - Off-Road Vehicles and Engines Pollution Control Devices
Article 8 - Off-Road Airborne Toxic Control Measures
Section 2478.4 - Spending Account
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) By July 1, 2026, each Locomotive Operator not exempted from this section shall establish a Spending Account to be held in the name of the Responsible Official. Locomotive Operators may elect to use an Alternative Compliance Plan or the Alternative Fleet Milestone Option instead of direct compliance with the requirements in this section, in which case they instead shall follow the requirements in section 2478.7 or section 2478.8, respectively.
(b) Annual Spending Account Funding Requirement. On or before July 1, 2026, and every July 1 thereafter, a Locomotive Operator that has Operated one or more Locomotives in California during the immediately preceding Calendar Year shall deposit the Spending Account Funding Requirement into their Spending Account unless the Spending Account Funding Requirement as calculated in subsection (c) is equal to or less than zero. Funds deposited are to be solely dedicated to compliance with the Spending Account requirements. No other funding sources shall be comingled in this account.
(c) The Spending Account Funding Requirement, which is the total amount an Operator is required to deposit into their Spending Account for a given Calendar Year, shall be calculated by subtracting the total ZE Credit and Spending Account Deposit Credit as set forth in subsections (g)(3), (g)(4), and (h) from the total Spending Account Calculation, as set forth in subsection (f), for an Operator's Locomotive fleet.
(d) Funds deposited in a Spending Account and any interest earned on funds held in a Spending Account shall only be used as follows:
(e) Within one year from the purchase date, the Locomotive Operator shall not transfer to another party the ownership or lease of equipment purchased using Spending Account funds.
(f) Spending Account Calculation Per Locomotive. The Spending Account Calculation Per Locomotive shall be calculated for each Calendar Year. For each Locomotive Operated in California during the immediately preceding Calendar Year, the Locomotive Operator shall use the following formula to calculate the Spending Account Calculation Per Locomotive:
Spending Account Calculation Per Locomotive [$] = {(Weighted Factor) x (PM EF [g/bhp-hr]) + (NOx EF [g/bhp-hr])} x (Annual Factor) x (Usage [MWhs])
Table 2: Weighted Factors and Annual Factors by Year
Year | Weighted Factor | Annual Factor |
2025 | 13.1 | 89.0 |
2026 | 13.1 | 92.6 |
2027 | 13.1 | 96.2 |
2028 | 13.1 | 99.9 |
2029 | 13.1 | 103.8 |
2030 | 13.1 | 107.3 |
2031 | 13.1 | 111.4 |
2032 | 13.1 | 115.8 |
2033 | 13.1 | 120.4 |
2034 | 13.2 | 125.1 |
2035 | 13.2 | 130.1 |
2036 | 13.2 | 135.1 |
2037 | 13.2 | 140.6 |
2038 | 13.2 | 146.4 |
2039 | 13.2 | 152.1 |
2040 | 13.2 | 158.5 |
2041 | 13.2 | 164.8 |
2042 | 13.2 | 171.5 |
2043 | 13.2 | 178.5 |
2044 | 13.2 | 185.7 |
2045 | 13.2 | 193.3 |
2046 | 13.3 | 201.2 |
2047 | 13.3 | 209.6 |
2048 | 13.4 | 218.5 |
2049 | 13.4 | 228.0 |
2050+ | 13.5 | 238.1 |
(g) ZE Credit. From January 1, 2024, to December 31, 2029, Operation of ZE Locomotive(s) and ZE Rail Equipment, and use of Wayside Power, by the Locomotive Operator in California may result in credits that reduce a Locomotive Operator's annual Spending Account Funding Requirement.
ZE Credit [$]={0.16x(Weighted Factor) + 6.5}x(Annual Factor)x(Usage [MWhs])
(h) Spending Account Deposit Credit. Beginning January 1, 2024, a Locomotive Operator may receive a credit equal to the amount spent on items listed in subsection (d).
(i) A Locomotive Operator may cash out and close their Spending Account if all Locomotives are Operated in a ZE Configuration in California in the immediately preceding Calendar Year. If the Locomotive Operator Operates a Locomotive that is not in ZE Configuration in California after they close their Spending Account, they shall be required to reopen the Spending Account and comply with the requirements of this section.
(j) A Locomotive Operator may close their Spending Account if it has a zero balance, but shall reopen the Spending Account and comply with the requirements of this section if it incurs a Spending Account Funding Requirement in the future that cannot be fully offset by Spending Account Deposit Credits.
(k) CARB and any CARB designee, including the California Department of Finance, may audit a Spending Account at any time. The Spending Account Owner shall give CARB and any CARB designee access to documents and information required to conduct an audit of the Spending Account upon CARB request.
Note: Authority cited: Sections 38560, 39600, 39601, 39658, 39659, 39666, 43013 and 43018, Health and Safety Code. Reference: Sections 39650, 39659, 41511, 43013 and 43018, Health and Safety Code.