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 Senate Committee on Labor and Industrial Relations 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 Consultant: Gideon L. Baum Page 3 Senate Committee on Labor and Industrial Relations 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 Consultant: Gideon L. Baum Page 4 Senate Committee on Labor and Industrial Relations 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 Consultant: Gideon L. Baum Page 5 Senate Committee on Labor and Industrial Relations 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 Consultant: Gideon L. Baum Page 6 Senate Committee on Labor and Industrial Relations 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 Consultant: Gideon L. Baum Page 7 Senate Committee on Labor and Industrial Relations 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 Senate Committee on Labor and Industrial Relations 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