June 9, 1999

Mail Out #MSC 99-13

TO: All Interested Parties
Dear Sir/Madam:

Heavy-duty engines are a significant source of smog-forming emissions, especially oxides of nitrogen (NOx). The Carl Moyer Memorial Air Quality Standards Attainment Program (the Carl Moyer Program) has been established to reduce NOx emissions by providing grants that cover the differential cost of cleaner on-road, off-road, marine, locomotive, and stationary agricultural engines. Earlier this year, the Air Resources Board (ARB or Board) adopted program guidelines and evaluation criteria for each project category. ARB was also asked and has agreed to include forklift and ground support equipment in the Carl Moyer Program.

The ARB staff will be holding a public workshop at the time and place noted below to discuss proposed project criteria for forklift and ground support equipment. The criteria are proposed as an addition to the Carl Moyer Program Guidelines. Based on the input that we receive at the workshop, staff will develop final project criteria. Since the Board delegated the Executive Officer of the ARB authority to approve any changes made to the Carl Moyer Program Guidelines, staff will present the final forklift and ground support equipment project criteria to the Executive Officer for approval.

The workshop will also focus on the advisability of providing funding for incremental fuel costs. Staff does not have a specific proposal to discuss at the workshop, but is seeking input from interested parties on the concept of including incremental fuel costs for funding under the Carl Moyer Program.

The workshop will be held at the following date, time, and location:

Tuesday, June 29, 1999
10:00 a.m. to 3:00 p.m.
California Air Resources Board
Annex 4, Auditorium
9530 Telstar Avenue
El Monte, California 91731

Forklift and Ground Support Equipment

Forklifts and airport ground support equipment can be powered by electric motors or by internal combustion engines. Electric equipment has no tailpipe or evaporative emissions, and minimal "upstream" emissions. Replacing internal combustion powered forklifts or ground support equipment with electric equipment where practicable can significantly reduce emissions. The guidelines under development will provide funding for the replacement of internal combustion forklifts and ground support equipment with electric models.

Electric forklifts are commercially available and widely used in indoor material handling applications, especially when large lift capacities are not required. The forklift guidelines will exclude those projects where electric-to-electric replacements are common because replacing an older electric forklift with a newer electric forklift does not reduce emissions. The guidelines will target those categories where electric forklifts are uncommon. Staff will also propose including categories where there is typically a mix of electric and internal combustion models. Electric four-wheel sit-down counter-balanced forklifts, rated as class 1, are eligible for funding under the program. Narrow-aisle electric forklifts and electric motor hand trucks (class 2 and 3 forklifts) are not eligible because they are used in applications where internal combustion forklifts are not practical.

Airport ground support equipment (GSE) includes vehicles and equipment that are used principally on the "air-side" or tarmac of the airport. This includes airplane and baggage tugs, carts for moving people and equipment, belt and container loaders, and other equipment. Electric GSE is commercially available and in use, but airports in California primarily use GSE powered by internal combustion engines. There are currently no regulations that require the use of electric GSE. The guidelines will provide criteria for the replacement of internal combustion GSE with electric models. The guidelines will exclude five airports in the South Coast Air Basin (Orange County, LAX, Burbank, Ontario, and Long Beach) because they are currently working through a consultative process with U.S. EPA to reduce airport emissions. This process is expected to result in a Memorandum of Understanding. The Carl Moyer Program does not cover costs associated with equipment required by regulations or other binding agreements.

A staff paper which includes proposed recommendations for forklift and GSE guidelines and project criteria will be available on our website at: http://www.arb.ca.gov/msprog/moyer/moyer.htm by Tuesday, June 15, 1999. If you are interested in having a copy sent to you, please contact Ms. Gayle Sweigert at (916) 322-6923 to have your name placed on the mailing list.

Incremental Fuel Costs

Incremental fuel costs are not covered under the Carl Moyer Program. One air quality district has suggested that they be allowed to pay for the incremental cost of fuel, as part of the district match funding requirements. If allowed, the project (including incremental fuel costs) would have to meet the $12,000 per ton cost-effectiveness requirement. Staff has not decided whether to develop a proposal on this issue. We are requesting comments on whether incremental fuel costs should be covered under the Carl Moyer Program. We plan to develop a policy on this issue, which reflects the input provided by interested parties.

If you have questions pertaining to the forklift and ground support equipment guidelines, please contact Ms. Gayle Sweigert, Air Pollution Specialist, Zero Emission Vehicle Implementation Section, at (916) 322-6923. If you have questions regarding incremental fuel cost, please contact Ms. Lucina Negrete, Air Pollution Specialist, Regulatory Strategy Section, at (916) 327-2938.

Robert H. Cross, Chief
Mobile Source Control Division

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