The regulation is expected to reduce HC and NOx emissions by 5.7 tons per day in 2010 and 6.2 tons per day in 2020 - like taking 200,000 cars off the road.

As part of California’s latest efforts to improve air quality, the state’s Air Resource Board has amended existing emissions standards and released stricter test procedures and fleet requirements for large spark-ignition (LSI) engine forklifts and other industrial equipment.

According to ARB, there are more than 90,000 off-road LSI engines in California, many of which have absolutely no emissions controls and have been part of operator fleets for decades. The organization estimates that ARB estimates that one uncontrolled engine can emit as much hydrocarbon (HC) and oxides of nitrogen (NOx) in three 8-hour shifts as a new car certified to California’s cleanest emission standard does over its entire lifetime. The LSI regulation will reduce HC and NOx emissions by about 6 tons per day, helping California to meet federally imposed clean air standards. The regulation is expected to reduce HC and NOx emissions by 5.7 tons per day in 2010 and 6.2 tons per day in 2020 – the equivalent of taking 200,000 cars off the road.

Manufacturers of 25 horsepower or greater off-road LSI engines must comply with new engine standards and test procedures, and manufacturers of retrofit emission control systems intended for use on LSI engines must comply with the verification procedures.

The regulations also apply to any state business with four or more gasoline- or propane-fueled engines, including forklifts. Additionally, out-of-state companies doing business within California must also adhere to the new standards. Those found to be out of compliance are subject to fines of $500 per vehicle per day retroactive to January 1, 2009, when the first fleet average standards became effective.

Industry impact

What does this mean for the materials handling industry? First of all, fleet operators with four or more LSI vehicles must be aware of the new standards. The immediate challenge is to educate affected companies about the stricter requirements and determine whether or not their fleets are in compliance. A number of companies, including CLARK Material Handling, headquartered in Lexington, Ky., and Toyota Material Handling (TMH) based in Hayward, Calif. are offering forklift evaluations to help businesses determine if their fleets fall within the more stringent standards.

“We understand the complexity of compliance and are happy to offer free fleet evaluations and recommendations,” says Mark Gates, TMH product support manager. “This will allow business owners to avoid penalties during a time when every penny counts.”

Compliance regarding in-use fleet vehicles is not measured by a traditional tail pipe exhaust test, and it’s doesn’t measure individual vehicles. It’s measured by creating a baseline for entire fleet inventory using required data such as make, model and serial number and calculating the fleet average. It’s the fleet average that must fall within the new standards.

If a fleet average is established and it does not fall with the new standards, companies must weigh their options – retrofit or replace. Some have no choice. Lift trucks older than 1991 cannot be retrofitted and must be replaced.

The clear and present concern for companies is undoubtedly is the bottom line. Not only are the fines steep, but companies with large fleets can see the cost to replace or retrofit vehicles mount quickly. But as Gates says, the state’s goal is not to put companies out of business, it’s to reduce emissions and be kind to the environment.

Cost of compliance

“The [new] requirements might have an impact on the lift truck material handling supply chain process from a cost and support perspective in the near term as the program is implemented. With CARB requirements, there are new technical emission truck components, particularly for the engine, that can present an increase in overall material costs,” says David Greathouse, director of manufacturing operations for Mitsubishi Caterpillar Forklift America (MCFA).

The ARB estimates that the total cost of compliance for companies affected by the stricter standards will be about $8 million. Financial assistance is available. For example,

Companies can apply for grant money through the Carl Moyer Memorial Air Quality Standards Attainment Program, which is a partnership between the ARB and local air districts throughout the state. Named after the late Carl Moyer, Ph.D., a key figure in developing state air quality policy, this is a voluntary program that offers grants to owners of heavy-duty vehicles and equipment. Grant money is available for projects that:

install particulate traps,

replace older heavy-duty engines with newer and cleaner engines and add a particulate trap,

purchase new vehicles or equipment that is cleaner than the law requires,

replace heavy-duty equipment with electric equipment, and

install electric idling-reduction equipment.

“Like most industries today, the material handling sector is gravitating toward cleaner manufacturing processes and technologies. MCFA has been working for years through its research and development process to deliver components that will allow our customers more fuel efficient and eco-friendly options for their material handling needs. It is important that our industry embrace this evolution of manufacturing and look for innovative ways to provide green alternatives while also delivering superior lift truck handling and performance applications,” says Paul Fiala, MCFA manager of product marketing and training.

ITA view

Financing is just one concern regarding this issue that has so many moving parts. Gary Cross, attorney and spokesperson for the Industrial Truck Association, headquartered in Washington, DC, says, “ITA members, as manufacturers, are directly subject to the ARB standards for new LSI engines.  Since most of these run on propane, we are concerned that the quality of propane available in California is not as consistent as the quality of gasoline available at service stations and that spotty propane quality could affect our engines’ ability to comply with the emissions limits over their useful life.”

Cross adds, “As to the LSI and diesel fleet requirements, ARB’s regulations for LSI fleets are less complex and are more rational, in our opinion, in the way they handle leased and rented forklifts, which are a significant percentage of the market—the basic idea for rented and leased units under the LSI fleet rule is that the end user is responsible for compliance and the end users’ demand for cleaner engines to meet the fleet requirements will cause manufacturers to supply those engines.  For diesel fleets, however, whether the end user or the owner of the forklift is responsible for compliance can depend on the length of the lease term, whether the lease meets the definition of a ‘finance lease,’ and whether the lease itself states who will be responsible.  We think this will create confusion and will make it more difficult for both end users and dealers to plan their compliance in advance.”

Another issue of concern for ITA is the possibility that retrofitting diesel engines with diesel particulate filters could create safety issues, such as reduced operator visibility and exposure to hot surfaces.  California OSHA is addressing this issue.

When do the new requirements take effect?

January 1, 2007 – new engine certification standard and associated test procedures

May 12, 2007 – retrofit emission control systems verification procedures

January 1, 2009 – in-use fleet average requirements

January 1, 2010 – more stringent new engine certification standard and test procedures

January 1, 2011 - in-use fleet average requirements

January 1, 2013 - in-use fleet average requirements