BILL ANALYSIS Ó
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 600
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: lieu
VERSION: 4/23/13
Analysis by: Erin Riches FISCAL: yes
Hearing date: April 30, 2013
SUBJECT:
Vehicles: alternative fuel conversions
DESCRIPTION:
This bill requires the state Air Resources Board (ARB) to revise
its procedures for small manufacturers seeking ARB certification
of alternative fuel conversion systems.
ANALYSIS:
Existing law requires ARB to adopt standards and regulations on
all classes of motor vehicles that will result in, among other
things, reductions in motor vehicle exhaust and evaporative
emissions. Under this authority, ARB regulates both new and
in-use vehicles, engines, and equipment.
Fuel conversion systems modify vehicles and engines so they can
run on different fuels than the ones for which they were
originally designed. Most alternative fuel conversions involve
reconfiguring a gasoline or diesel vehicle or engine to operate
on an alternative fuel such as natural gas, propane, alcohol, or
electricity. Prior to selling a fuel conversion system, a
manufacturer must obtain ARB certification to ensure that the
vehicle, engine, or equipment meets state emission standards.
ARB's alternative fuel conversion regulations apply to all
vehicles, regardless of age. Although ARB has not updated these
regulations since 1995, it is currently conducting a rulemaking
process to consider a number of revisions.
The federal Clean Air Act prohibits manufacturers from altering
a vehicle or engine from its certified configuration. United
States Environmental Protection Agency (US EPA) regulations
exempt alternative fuel conversion manufacturers from this
prohibition if they can demonstrate that the conversion does not
compromise emissions compliance with federal clean air
standards. US EPA recently amended its alternative fuel
SB 600 (LIEU) Page 2
conversion regulations in an attempt to streamline the
compliance process. Among other things, the revised
regulations:
Eliminate the requirement for manufacturers annually to
recertify the Clean Air Act exemption for each vehicle and
engine;
Provide three sets of conversion certification requirements,
depending on vehicle and engine age;
Allow manufacturers to use one set of data to support the
conversion certification application of a subsequent year's
test group or engine family;
Allow manufacturers, for mixed-fuel and dual-fuel conversions,
to submit a statement of compliance in lieu of test data on
the original fuel if the manufacturer can attest that the
conversion maintains original certification standards.
This bill requires ARB, beginning January 1, 2014, in reviewing
applications from small volume manufacturers for certification
of alternative fuel conversion systems, to:
Use the revised US EPA test procedures.
Certify to federal tailpipe emission standards and On-Board
Diagnostics II (smog check) standards, provided the
manufacturer meets or improves upon the standards to which the
original equipment manufacturer certified on the original
fuel.
Automatically qualify alternative fuel conversion
certifications for after-market certifications on new vehicles
upon manufacturer request.
Use commercially available fuel for all required emissions
testing.
Conduct evaporative emissions testing on the added alternative
fuel system only when seeking to certify a dual-fuel vehicle
conversion.
This bill also requires ARB, beginning January 1, 2014, to
extend a new vehicle or engine certification until December 31st
of the year following a given model year.
SB 600 (LIEU) Page 3
COMMENTS:
1.Purpose . The author states that ARB review and certification
of a fuel conversion application can take more than three
months, while US EPA performs the same review in approximately
two weeks. Conversion companies estimate that testing and
paperwork for US EPA certification costs around $50,000, while
ARB certification can run $300,000 or more. In addition,
ARB-required test fuel can cost $100 per gallon for natural
gas as compared to $2 per gallon for commercially available
fuel. By lowering the costs and review time for
certification, this bill will enable small volume
manufacturers of alternative fuel conversion systems to get
cleaner vehicles on the road more quickly.
2.Why convert to alternative fuel ? Converting a vehicle from
gasoline or diesel fuel to an alternative fuel such as
compressed natural gas or propane can significantly reduce its
level of smog-forming emissions. In California, the number of
particulate matter-related cardiopulmonary premature deaths is
9,200 per year. Not only can emissions reductions achieved by
alternative fuel conversions help reduce those deaths, but it
can also help California meet federal clean air standards and
state greenhouse gas emissions reduction goals. In addition,
alternative fuels often enable a vehicle to run less
expensively, enhancing their appeal to consumers.
3.US EPA vs. ARB standards . Federal law authorizes California
to carry out and enforce its own - more stringent - vehicle
emissions regulations for vehicles sold and registered in
California. Federal law also allows other states to adopt
California's emissions regulations for new vehicles, which
more than a dozen states have done or are in the process of
doing. To obtain either federal or ARB certification, a
converted vehicle must meet the same emissions requirements as
the original vehicle. The testing also ensures that the
retrofit system works properly with the on-board diagnostics
(OBD) system to warn the driver, and record for a smog check
technician, when emissions exceed approved levels. One of the
key differences between federal and state fuel conversion
regulations is that federal regulations provide different sets
of requirements for different vehicle ages; for example, US
EPA regulations allow a manufacturer to sell an after-market
system under an expired certification if the system is to be
installed on a vehicle that is more than two model years old.
SB 600 (LIEU) Page 4
In addition, the revised federal regulations allow
manufacturers to combine vehicle and engine test groups,
alleviating some of the costs to demonstrate emissions
benefits of alternative fuel systems.
4.Extending the length of certification . Current ARB
regulations limit conversion certifications to December 31st
of the calendar year of the applicant vehicle's model year.
This bill's co-sponsor, the Western Propane Gas Association,
notes that by the time a new vehicle or engine is certified,
there is often only a narrow window left in which to sell the
vehicle. By extending certification life, this bill will
provide manufacturers with more time to sell their inventory.
5.ARB response time . The author of this bill states that ARB
review and certification of a fuel conversion application can
take more than three months. ARB asserts that it responds to
manufacturers within 30 days after it receives an application
and completes reviews within 90 days. ARB further states that
due to improvements implemented last year, reviews averaged 30
days in 2012.
6.Is this bill premature ? In response to numerous industry
inquiries, ARB is currently soliciting input and holding
workshops with interested manufacturers - including the
sponsors of this bill - as it considers aligning its
alternative fuel conversion certification procedures with
those of US EPA. ARB expects to complete this rulemaking
process, which includes many of the issues outlined in this
bill, in fall 2013. If the final rule addresses all the
issues included in this bill, this bill will be unnecessary.
If the final rule does not address all these issues, and this
bill becomes law, ARB will have to initiate a new rulemaking
process to adopt the changes.
7.Previous legislation . SB 724 (Dutton) of 2011 would have
required ARB to respond within 30 working days to an
application for certification of a new, carryover, or partial
carryover on-road or off-road vehicle, engine, or equipment
family. The Legislature passed SB 724 without a single "no"
vote but Governor Brown vetoed the bill. His veto message
stated that "this bill could interfere with the iterative
information gathering application approval process, thereby
rushing the process and inadvertently allowing vehicles with
defective emission components on the market."
SB 600 (LIEU) Page 5
POSITIONS: (Communicated to the committee before noon on
Wednesday, April 24,
2013.)
SUPPORT: California Natural Gas Vehicle Coalition
(co-sponsor)
Clean Energy
Western Propane Gas Association (co-sponsor)
OPPOSED: None received.