Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Locomotive Operators that wish to use the
Alternative Fleet Milestone Option (AFMO) instead of directly complying with
the requirements set forth in section
2478.4 and section
2478.5 shall apply to CARB at
least 90 calendar days prior to the requested start date of the AFMO.
(b) The AFMO is as follows:
(1) Beginning January 1, 2030, 50 percent of
a Locomotive Operator's annual fleet Usage in California shall be from Cleaner
Locomotives, ZE Locomotives, ZE Capable Locomotives, or ZE Rail
Equipment.
(2) Beginning January 1,
2035, 100 percent of a Locomotive Operator's annual fleet Usage in California
shall be from Cleaner Locomotives, ZE Locomotives, ZE Capable Locomotives, or
ZE Rail Equipment.
(3) Beginning
January 1, 2042, 50 percent of a Locomotive Operator's annual fleet Usage in
California shall be from ZE Locomotives, ZE Capable Locomotives, or ZE Rail
Equipment.
(4) Beginning January 1,
2047, 100 percent of a Locomotive Operator's annual fleet Usage in California
shall be from ZE Locomotives, ZE Capable Locomotives, or ZE Rail
Equipment.
(c) Prior to
January 1, 2047, Operation of ZE Locomotives or ZE Rail Equipment in California
may offset Operation of a Locomotive Operator's pre-Tier 4 Locomotives at the
following rates each year:
(1) Each one MWh
generated by Operation of a ZE Locomotive or ZE Rail Equipment in California
allows two (2) MWhs of Usage generated from a Tier 2 or Tier 3 Locomotive's
Operation in California to count as "Tier 4 Locomotive" Operations for purposes
of calculating the Cleaner Locomotive percentage requirement in subsection
(b);
(2) Each one MWh generated by
Operation of a ZE Locomotive or ZE Rail Equipment allows one and a half (1.5)
MWh of Usage generated from a Tier 1 Locomotive's Operation in California to
count as "Tier 4 Locomotive" Operations for purposes of calculating the Cleaner
Locomotive percentage requirement in subsection (b);
(3) Each one MWh generated by Operation of a
ZE Locomotive or ZE Rail Equipment allows one (1) MWh of Usage generated from a
Tier 0 Locomotive's Operation in California to count as "Tier 4 Locomotive"
Operations for purposes of calculating the Cleaner Locomotive percentage
requirement in subsection (b); or
(4) Each one MWh generated by Operation of a
ZE Locomotive or ZE Rail Equipment allows a half (0.5) MWh of Usage generated
from a pre-Tier 0 Locomotive's Operation in California to count as "Tier 4
Locomotive" Operations for purposes of calculating the Cleaner Locomotive
percentage requirement in subsection (b).
(5) The offsets listed in subsections (c)(1)
through (c)(4) above are mutually exclusive. For each MWh of Usage generated by
Operation of a ZE Locomotive or ZE Rail Equipment in California, the Operator
can choose one of the offsets listed above.
(d) Locomotive Operators will be evaluated on
whether they meet the requirements in subsection (b) based on information
submitted annually under section
2478.11.
(e) Applicants seeking approval to use the
AFMO shall submit their applications to CARB following the requirements set
forth in section
2478.15. If a Locomotive Operator
seeks to apply after any milestone deadline has already passed, the Locomotive
Operator must meet all prior fleet milestone(s) before they may apply. The
Locomotive Operator shall submit the following information in the AFMO
application:
(1) Locomotive Operator name and
contact information, including an email address and phone number.
(2) A detailed list of all Locomotives
Operated in the Locomotive Operator's fleet.
(A) Indicate which, if any, Locomotives
Operate outside of California.
(B)
Information for each Locomotive must be included as indicated in subsection
2478.10(a)(2).
(3) A detailed description of any plans for
expansion of Locomotive Operations in California with details on how the
Operator will increase service (e.g., with new Locomotives or by increasing use
of current Locomotive fleet).
(4) A
detailed description of how the Locomotive Operator plans to fulfill the fleet
milestones.
(5) An attestation
statement pursuant to subsection
2478.15(a)(2).
(6) An attestation that the Locomotive
Operator understands: The AFMO represents an obligation by the Operator to
transition their California Operating fleet to Cleaner and ultimately ZE
Locomotives instead of directly complying with the requirements in sections
2478.4 and
2478.5. The Locomotive Operator
has read and understands the penalty provisions of section
2478.16 and acknowledges that
failure to meet the requirements of the AFMO constitutes a violation of this
Locomotive Regulation and may subject the Locomotive Operator to penalties
described in section
2478.16 for the time period during
which the AFMO was in place.
(f) Approval. The Executive Officer may
approve an AFMO application that satisfies the requirements for submittal only
upon finding all the following:
(1) The AFMO
application complies with the applicable requirements set forth in subsection
(e).
(2) The AFMO application
provides sufficient information to verify the Locomotive Operator's plan to
meet applicable targets set in subsection (b), including detailed explanation
of the information and any calculations used.
(3) The AFMO 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
AFMO application, the Executive Officer shall issue a notice of approval if the
application meets the requirements of this section.
(1) If the AFMO is approved, upon the start
date for the AFMO listed in the Executive Order approving the AFMO, the
Locomotive Operator shall be exempt from its regulatory obligations under the
Spending Account and In-Use Operational Requirements unless revoked as
described in subsection (o).
(h)
Notice of Disapproval.
Within 45 business days after the Executive Officer has received an AFMO
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)
Duration. Once approved, an AFMO is valid in perpetuity and
binds the Locomotive Operator to follow the AFMO without the ability to opt-out
at a future date, unless the AFMO is revoked.
(j) Detailed Timeline Reports.
(1) At the following intervals, the
Locomotive Operator shall submit a report to the Executive Officer identifying
specific dates for the lease or purchase of each Compliant Equipment required
to meet the milestones set forth in subsection (b). Lease or purchase means the
Operator will, by the indicated deadline, enter into a lease agreement, execute
a purchase contract, submit a purchase order, or otherwise take binding steps
to lease or purchase the Compliant Equipment.
(A) By July 1, 2026, the Locomotive Operator
shall submit specific milestone dates for the purchase of each Compliant
Equipment required to meet the 50 percent Cleaner Locomotive milestone
specified in subsection (b)(1).
(B)
By July 1, 2030, the Locomotive Operator shall submit specific milestone dates
for the purchase of each Compliant Equipment required to meet the 100 percent
Cleaner Locomotive milestone specified in subsection (b)(2).
(C) By July 1, 2037, the Locomotive Operator
shall submit specific milestone dates for the purchase of each Compliant
Equipment required to meet the 50 percent ZE milestone specified in subsection
(b)(3).
(D) By July 1, 2042, the
Locomotive Operator shall submit specific milestone dates for the purchase of
each Compliant Equipment required to meet the 100 percent ZE milestone
specified in subsection (b)(4).
(2) Annually, beginning July 1, 2026, and by
each July 1, thereafter, each Locomotive Operator shall submit the following
documentation, if applicable, as proof that milestone dates listed in the
Detailed Timeline Reports for the immediately preceding Calendar Year were
satisfactorily met.
(A) Executed contracts
showing Compliant Equipment has been ordered and is anticipated to be in
Operation prior to the milestone date; and
(B) Purchase orders showing Compliant
Equipment has been ordered and is anticipated to be in Operation prior to the
milestone date.
(k)
Detailed Timeline Report
Approval. The Executive Officer may approve a Detailed Timeline Report
that satisfies the requirements for submittal only upon finding all the
following:
(1) The Detailed Timeline Report
complies with all the applicable requirements set forth in subsection
(j)(1);
(2) The Detailed Timeline
Report is submitted as specified in section
2478.15; and
(3) The Detailed Timeline Report demonstrates
to the satisfaction of the Executive Officer using Good Engineering Judgment
that the Locomotive Operator will be able to meet the applicable milestones in
subsection (b) by adhering to the timeline in the Detailed Timeline
Report.
(l)
Detailed Timeline Report Notice of Approval. Within 45
business days after the Executive Officer has received a complete Detailed
Timeline Report, the Executive Officer shall issue a notice of approval if the
application meets the requirements of this section.
(m)
Detailed Timeline Report Notice
of Disapproval. Within 45 business days after the Executive Officer
has received a Detailed Timeline Report, 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. If the Detailed Timeline
Report is disapproved, the Locomotive Operator may resubmit an amended Detailed
Timeline Report.
(n) Extensions and
Modifications.
(1) The Locomotive Operator may
request an extension to any milestone date in the Detailed Timeline Report by
following the procedures set forth in subsection
2478.6(b).
(2) The Locomotive Operator may apply for
modification of the components set forth in the Detailed Timeline Report for
good cause as long as they still meet the requirements for approval in
subsection (k).
(3) The Executive
Officer may approve of the request for modification if the Executive Officer
determines, using Good Engineering Judgment, that the Locomotive Operator still
meets the requirements for approval in subsection (k).
(o)
Revocation. An AFMO that
has been revoked shall not be used for compliance with this Locomotive
Regulation as of the date of revocation.
(1)
An approved AFMO 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.
(B) The Locomotive Operator fails to submit
documentation pursuant to subsection (j)(2), or the documentation submitted
fails to indicate necessary actions such as ordering and purchasing Compliant
Equipment, installing infrastructure, applying for grants, and other progress
signifying a good faith effort to meet upcoming milestone dates of subsection
(b).
(C) The Locomotive Operator
has failed to obtain approval of a Detailed Timeline Report by no later than
one year after the submission deadline.
(D) The Locomotive Operator has failed to
meet a milestone date set forth in a Detailed Timeline Report and has not
successfully obtained an extension.
(E) The Locomotive Operator fails to meet any
other applicable requirements of this Locomotive Regulation, including Idling,
Registration, and annual Reporting Requirements.
(2) 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.
(3) The notice of revocation will indicate
the revocation date of the AFMO. After that revocation date, the Locomotive
Operator is subject to all the requirements of this Locomotive Regulation and
may incur penalties for future non-compliance as set forth in section
2478.16. The Executive Officer may
assess penalties upon revocation, for the time during which the Locomotive
Operator Operated under the AFMO but did not meet requirements of the AFMO, as
set forth in section
2478.16.
(p)
Public Transparency.
CARB will upload all approved AFMO applications, annual reports, and Detailed
Timeline Reports to the CARB "Reducing Rail Emissions in California" webpage
for public access. CARB shall provide notice on its webpage of any disapproved
AFMO application or revoked AFMO. 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.
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.
