BILL ANALYSIS                                                                                                                                                                                                    Ó






                 Senate Committee on Labor and Industrial Relations
                                 Ted W. Lieu, Chair

          Date of Hearing: April 11, 2012              2011-2012 Regular 
          Session                              
          Consultant: Gideon L. Baum                   Fiscal:Yes
                                                       Urgency: No
          
                                  Bill No: SB 1230
                                   Author: Wright
                        As Introduced/Amended: March 29, 2012
          

                                       SUBJECT
          
              Occupational Safety and Health Standards Board: emissions 
                                      control.


                                      KEY ISSUE

          Should the Legislature delay the application of California Air 
          Resource Bureau (CARB) regulations requiring on-road diesel 
          emissions control strategies?
          

                                       PURPOSE
          
          To delay the application of CARB diesel emission and particulate 
          matter control regulations until the Occupational Safety and 
          Health Standards Board (OSHSB) issues additional safety 
          regulations on the retrofitting of the diesel emission and 
          particulate matter control technology. 


                                      ANALYSIS
          
           Existing law  declares that it is the intent of the Legislature 
          that the State Air Resources Board (CARB) shall have the 
          responsibility, except as otherwise provided in law, for control 
          of emissions from motor vehicles and shall coordinate, 
          encourage, and review the efforts of all levels of government as 
          they affect air quality.  (Health and Safety Code §39500)

           Existing law  requires that CARB adopt standards, rules, and 
          regulations necessary for the proper execution of the powers and 









          duties granted to, and imposed upon, CARB by state law.  Such 
          standards, rules, and regulations adopted by CARB must, to the 
          extent allowed by state law, be consistent with the state goal 
          of providing a decent home and suitable living environment for 
          every Californian.  (Health and Safety Code §39601)

           Existing law  provides a specific regulatory framework for 
          controlling the emission of substances which are determined to 
          be carcinogenic, teratogenic, mutagenic, or otherwise toxic or 
          injurious to humans.  Control measures can include but are not 
          limited to, emission limitations, control technologies, the use 
          of operational and maintenance conditions, closed system 
          engineering, design, equipment, or work practice standards, and 
          the reduction, avoidance, or elimination of emissions through 
          process changes, substitution of materials, or other 
          modifications.  
          (Health and Safety Code §§39650 to 39671)

           Existing law provides that any person who violates any rule or 
          regulation, emission limitation, permit condition, order fee 
          requirement, or filing requirement is strictly liable for a 
          civil penalty not to exceed ten thousand dollars ($10,000) for 
          each day in which the violation occurs.  If the violation is 
          found is established as unintentional, then such liability does 
          not apply.  
          (Health and Safety Code §39674)

           Existing law  provides for the Occupational Safety and Health 
          Standards Board (OSHSB), which consists of seven individuals 
          appointed by the Governor for four year terms.  Two members must 
          be from the field of management, two members must be from the 
          field of labor, one member must be from the field of 
          occupational health, one member must be from the field of 
          occupational safety and one member must be from the general 
          public. 
          (Labor Code §§140 and 141)

           Existing law  empowers OSHSB, by an affirmative vote of four or 
          more members, to adopt, amend, or repeal occupational safety and 
          health standards.  The procedure to adopt, repeal, or amend 
          occupational safety and health standards must follow the process 
          for promulgating regulations, unless otherwise stated in Labor 
          Hearing Date:  April 11, 2012                            SB 1230  
          Consultant: Gideon L. Baum                               Page 2

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          Code. (Labor Code §§142.3 and 142.4)

           Existing law  requires that the Department of Occupational Safety 
          and Health (DOSH) enforce all occupational safety and health 
          standards adopted by OSHSB. (Labor Code §142)

           Existing law  requires that OSHSB develop or revise certain 
          specific occupational safety and health standards, including 
          bloodborne pathogens, hazardous substance removal work, 
          agricultural field sanitation, and lead-related construction.  
          (Labor Code §§142.7, 144.7, 6712, & 6717)

           This bill  requires that, by January 1, 2014, the OSHSB adopts 
          standards designed to ensure the safety of the operator in the 
          installation, use, and operation of a verified diesel emission 
          control strategy on-road heavy-duty diesel-fueled motor 
          vehicles. The standards shall, at a minimum, ensure all of the 
          following:
             1)   The strategy shall not reduce the capacity, structural 
               integrity, or safe performance of a vehicle;
             2)   The strategy shall not reduce an operator's ability to 
               enter or exit a vehicle safely;
             3)   The strategy shall not increase the risk of a vehicle 
               fire;
             4)   The strategy shall not, through routine maintenance, 
               emergency maintenance, or normal operations, burn or harm 
               the operator;
             5)   To the extent feasible, the strategy shall not cause the 
               vehicle to stop operating while traveling on the highway or 
               roadway; and
             6)   To the extent feasible, the strategy shall not affect 
               the normal function and operation of the vehicle.

           This bill  would also prohibit the California Air Resources Board 
          from requiring fleet owners to install verified diesel emission 
          control strategies until  six months after  OSHSB approves the 
          occupational safety standards for verified diesel emission 
          control strategies.  This bill also provides that this safety 
          requirement must not impact the on-going implementation of CARB 
          regulations.

           This bill  would also make findings, declarations, and 
          Hearing Date:  April 11, 2012                            SB 1230  
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          definitions that would further implement the intent of the bill.

                                      COMMENTS

          
          1.  Diesel Emissions and Occupational Health:

            Diesel emissions are produced when an engine burns diesel 
            fuel.  These emissions are a mixture of thousands of gases and 
            fine particles, including more than 40 toxic air contaminants. 
             These include many known or suspected cancer-causing 
            substances, such as benzene, arsenic and formaldehyde. It also 
            contains other harmful pollutants, including nitrogen oxides, 
            which create smog.  


            In its 1998 assessment of diesel emissions, the Office of 
            Environmental Health Hazard Assessment (OEHHA) analyzed more 
            than 30 studies of people who worked around diesel equipment, 
            including truck drivers, railroad workers and equipment 
            operators. The studies showed these workers were more likely 
            to develop lung cancer than workers who were not exposed to 
            diesel emissions.  According to OEHHA, other researchers and 
            scientific organizations, including the National Institute for 
            Occupational Safety and Health, have calculated similar cancer 
            risks from diesel emissions.


            Diesel engines are also a major source of fine-particle 
            pollution.  According to OEHHA, studies have linked elevated 
            particle levels in the air to increased hospital admissions, 
            emergency room visits, asthma attacks and premature deaths 
            among those suffering from respiratory problems.  OEHHA also 
            notes that exposure to fine particles is associated with 
            increased frequency of childhood illnesses and can also reduce 
            lung function in children.


            Using 2006-2008 emission levels in California, the California 
            Air Resources Bureau (CARB) estimates that diesel particulate 
            matter contributes to between 1,500 to 2,400 premature deaths 
            each year.
          Hearing Date:  April 11, 2012                            SB 1230  
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          2.  A Brief History of State and Federal Diesel Emission 
            Regulations:
           
            As was mentioned above, the Office of Environmental Health 
            Hazard Assessment (OEHHA) completed a health assessment on 
            diesel emissions in 1998.  Upon releasing the findings of that 
            health assessment, the California Air Resources Bureau (CARB) 
            began its statutorily-required process of formally identifying 
            particles in diesel emissions as a toxic air contaminant that 
            may pose a threat to human health.  In 2000, CARB released its 
            risk reduction plan, calling for a 75% reduction in diesel 
            particulate matter emissions by 2010 and an 85% reduction in 
            diesel particulate matter by 2020.  

            In 2008, CARB approved truck and bus regulations to 
            particulate matter and nitrogen oxide emissions from existing 
            diesel vehicles operating in California.  Updated in 2010, 
            these emissions create a schedule for controlling emissions 
            through either a verified diesel emission control strategy or 
            by replacing the engine.  This is discussed in greater detail 
            below.

            The federal Environmental Protection Agency (EPA) began 
            studying diesel emissions in 1997, putting forward a stringent 
            emissions-reducing plan to take effect from 2004 forward.  The 
            EPA signed an agreement with diesel engine manufacturers in 
            1998 that addressed several concerns with diesel emissions, 
            including consent decrees to manufacturer cleaner engines by 
            2002 that would exceed the 2004 standards.

            In December of 2000, the EPA reached a further series of 
            agreements with diesel engine manufacturers and diesel 
            refiners.  Beginning in mid-2006, refiners were required to 
            only produce low-sulfur diesel fuel for highway trucks.  In 
            2007, diesel engine manufacturers began selling low-emission 
            diesel engines, with low-emission diesel engines being the 
            mandated minimum by 2010.  These requirements ensured that 
            post-2007 were 90% cleaner than pre-2007 trucks.

          3.  What is a "Verified Diesel Emission Control Strategy"?  
          Hearing Date:  April 11, 2012                            SB 1230  
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            A verified diesel emission control strategy (VDECS) is a 
            device that is verified by CARB to capture diesel particulate 
            matter from diesel emissions.  This is frequently done by 
            attaching a device to the vehicle that captures the exhaust 
            and burns off the particulate matter by operating at a high 
            heat.  As per the federal standards, post-2007 trucks 
            frequently have this technology already built into the 
            vehicle.  For pre-2006 vehicles, CARB requires the devices to 
            be retrofitted to the trucks.

            For example, a 2007 year engine, CARB requires no control 
            technology until 2023, and then only requires a 2010 model 
            year engine in 2023.  For a 1997 model year engine, however, 
            CARB requires a VDECS from 2012 to 2020, and then that the 
            engine would need to be replaced with a 2010 model year 
            engine.  Vehicles with a 2010 model year engine automatically 
            comply with these requirements.  These regulations impact 1.25 
            million vehicles, and for many model year engines, these 
            regulations went into effect on January 1, 2012.

            These regulatory requirements also provide exemption for 
            certain classes of vehicles.  These include dedicated use 
            vehicles, such as fuel delivery vehicles, concrete mixers, and 
            on-road mobile cranes.  CARB also delays the implementation 
            schedule for certain vehicles, such as low-mileage 
            construction vehicles, or vehicles where a VDECS is 
            unavailable.  The CARB regulations also provide a blanket 
            exemption for emergency vehicles defined in Vehicle Code 165, 
            which include police and firefighting vehicles.

          4.  Are "Verified Diesel Emission Control Strategies" Safe?  

            This question is the crux of this bill.  The authors and the 
            proponents of SB 1230 believe that the CARB verification 
            process for Verified Diesel Emission Control Strategies 
            (VDECS) does not appropriately take into account operator 
            safety.  The authors and proponents also cite several 
            examples, both in and outside of California, where VDECS 
            failed, leading to small fires and one suspected forest fire.

            The process for verifying VDECS is extensively laid out in 
          Hearing Date:  April 11, 2012                            SB 1230  
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            CARB regulations.  While the focus of regulations is on air 
            quality, the regulations do require that the report that CARB 
            requires for verification of the devices include a section 
            that requires a "complete discussion of potential safety 
            issues".  CARB regulations also prohibit the installation of a 
            VDECS if it impairs the safe operation of the vehicle or 
            violates occupational safety and health requirements.

            All failures of VDECS must be reported to CARB.  CARB was 
            contacted by this Committee for specifics on how many devices 
            are currently installed on vehicles in California and how many 
            of these devices have failed to the point of possible fire, 
            actual fire, or injury to operator.  According to CARB, 
            approximately 25,000 VDECS have been installed in California 
            since 2002.  Another approximately 215,000 original equipment 
            manufactured diesel particulate filters (DPFs), which are 
            essentially identical to VDECS, and have been in use in 
            on-road heavy-duty trucks.

            Of these devices, CARB is only aware  of 15 or fewer cases  
            where the devices have failed to the point where safety could 
            have been an issue.  In every case the failure was attributed 
            to abuse, poor maintenance, tampering, improper use, 
            inappropriate installation, or a combination of these factors. 
             Additionally, CARB states that it is not aware of any 
            visibility safety issues with the retrofitted VDECS nor have 
            any visibility safety issues been raised with vehicles 
            previously outfitted with emission control devices.  

            CARB also notes that their verification process to ensure that 
            the VDECS are designed with sound scientific and engineering 
            principles would almost certainly rule out any device that was 
            fundamentally unsafe.  CARB, however, will be considering 
            amendments to their regulatory process in June of this year 
            that will make this implicit requirement more explicit.

          5.  Proponent Arguments  :
            
            Proponents, who include Southern California Contractors 
            Association and the California State Council of Laborers, 
            argue that while the state does verify and certify diesel 
            particulate filters, the verification process emphasizes the 
          Hearing Date:  April 11, 2012                            SB 1230  
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            level of emission reductions and falls woefully short in 
            ensuring operator safety.  Proponents also argue that creating 
            a safety standard for the installation of diesel particulate 
            filters is not new for the state.  Proponents note that the 
            Occupational Safety and Health Standards Board adopted a 
            standard for the safe installation of diesel particulate 
            filters for off-road diesel-vehicles in December 2011.  
            Proponents argue that if a standard was justified for 120,000 
            or so off-road diesel vehicles and equipment, it certainly 
            should be justified for one million or so on-road diesel 
            vehicles.

          6.  Opponent Arguments  :

            Opponents of the bill, who include the Diesel Retrofit 
            Coalition and Sierra Club California, argue that the CARB 
            In-Use Off Road Diesel Regulation already requires all VDECS 
            to undergo a rigorous verification process that specifically 
            addresses safety issues including an identification of failure 
            modes and associated consequences, and a complete discussion 
            of all potential safety issues including uncontrolled 
            regeneration, lack of proper maintenance, and unfavorable 
            operating conditions.  Proponents also note that manufacturers 
            must regularly submit to ARB comprehensive reports detailing 
            all product failures and the reasons for those failures so 
            that CARB may assess whether any VDECS product poses a 
            significant safety concern, should be subject to additional 
            testing, or should be removed from the marketplace.  Finally, 
            opponents argue that SB 1230 will undermine the public health 
            protections afforded by CARB's diesel rules by creating a 
            duplicative regulatory process with the California 
            Occupational Safety and Health Standards Board that actually 
            preempts the CARB authority.

          7.  Prior Legislation  :

            SB 432 (De Leon) of 2011 would have required the Occupational 
            Safety and Health Standards Board (OSHSB) to develop an 
            occupational safety and health standard for lodging 
            housekeepers, including the requirement of fitted sheets and 
            long handled tools.  SB 432 is currently on the Assembly 
            Appropriations Committee suspense file.
          Hearing Date:  April 11, 2012                            SB 1230  
          Consultant: Gideon L. Baum                               Page 8

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                                       SUPPORT
          
          Southern California Contractors Association (sponsor)
          California Construction Trucking Association
          California Professional Association of Specialty Contractors
          California State Council of Laborers
          California Tow Truck Association
          California-Nevada Conference of Operating Engineers
          Golden State Builders' Exchanges
          United Contractors
          

                                     OPPOSITION
          
          American Lung Association of California
          Bay Area Air Quality District
          Breathe California
          California League of Conservation Voters
          Coalition for Clean Air
          Natural Resources Defense Council
          Regional Asthma Management and Prevention (RAMP)
          Sierra Club California
          The Diesel Retrofit Coalition
          Union of Concerned Scientists















          Hearing Date:  April 11, 2012                            SB 1230  
          Consultant: Gideon L. Baum                               Page 9

          Senate Committee on Labor and Industrial Relations