This page updated August 4, 2008

The Fleet Rule for Public Agencies and Utilities (title 13, California Code of Regulations, (sections 2022 and 2022.1) allows a municipality or utility to "retire" a vehicle and have the "retired" vehicle count towards the best available control technology (BACT) compliance requirement. This page is intended as guidance for municipalities and utilities to insure the proper "retirement" of a vehicle. This page contains links to documents that will assist agencies in this effort. Municipalities or utilities are responsible for the proper retirement of a vehicle in compliance with title 13, CCR, section 2022.1.

What is "retirement"?
The regulation requires municipalities and utilities that operate on-road diesel fueled vehicles greater than 14,000 pounds gross vehicle weight rating powered by a 1960 through 2006 model year medium heavy-duty or heavy heavy-duty diesel engine to apply BACT according to a specific compliance schedule. However, if a municipality or utility "retires" a vehicle per the definition set in the regulation, the municipality or utility may count the vehicle as compliant toward its BACT commitment. Retirement is defined by title 13, California Code of Regulations (CCR), section 2022 as:

The withdrawal of an engine or vehicle subject to this rule from the municipality or utility fleet in California; the engine may be sold outside of California, scrapped, converted for use in a low-usage vehicle or low-population county low-usage vehicle. Retirement or retire also means the transfer of an engine or vehicle, which is subject to this rule and has been brought into compliance with title 13, CCR, section 2022.1(b), from a municipality or utility fleet in California to another person or entity in California.

Simply stated, if an agency "retires" a vehicle, the vehicle must meet one of the following requirements:
- sold, registered and operated out-of-state,
- scrapped,
- used as a low-usage or low-population county low-usage vehicle, or
- sold in-state WITH BACT installed.

How does an agency demonstrate their "retired" vehicles are in compliance?

A municipality or utility must keep records of its retired vehicles as a part of the fleet vehicle records. Documentation is required for all vehicles sold out-of-state or scrapped. Low-usage vehicles and Low-Population County low-usage vehicles are considered retired vehicles. These vehicles must be labeled as "low-usage vehicle," or "Low-Population County low-usage vehicle," and have documents maintained on the mileage driven or hours used. Remember, low-usage vehicles are operated for less than 1,000 miles or fifty (50) hours on an annual rolling mileage or engine hour average, averaged over five (5) years. Low-Population County low-usage vehicles are operated for less than 3,000 miles or 150 hours on an annual rolling mileage or engine hour average, averaged over five (5) years. BACT would NOT be required on these vehicles. If a vehicle is designated as a low-usage vehicle for credit towards BACT, then when or if it is sold, the vehicle must be sold out-of-state, scrapped, or if sold within California, have BACT applied.

What documents do I need to keep for a vehicle sold out-of-state?

A municipality or utility should keep documents that provide date of sale, vehicle and engine information, and buyer information, along with evidence of notification to the buyer that the vehicle cannot be operated in the state of California. Documents can include copies of contracts, notifications concerning the sale of the vehicle, Department of Motor Vehicles (DMV) sales forms, or ARB's Out-of-State Sales Verification Form. This form can be used to notify the purchaser, as well as to keep as documentation of out-of-state sales. For out-of-state sales, ARB requests that the selling agency use ARB's VIN Stop process, at least one month prior to the sell, to stop vehicle re-registration, utilizing the online vehicle identification number (VIN Stop) Request Application Form to prevent the buyer from re-registering the vehicle in California.

How do I ensure proper "retirement" of a vehicle?

1) Identify vehicle(s) that will be sold out-of-state, as "retired" in section 2022(b)5 for compliance with section 2022.1(c);

2) Initiate a registration block or VIN Stop by completing an online VIN Stop Request Application Form. ARB recommends the VIN Stop be initiated at least one month prior to the sell of the vehicle;

This Request for VIN Stop Application Form is only applicable to vehicles subject to the Fleet Rule for Public Agencies and Utilities or Fleet Rule for Solid Waste Collection Vehicles.

3) Notify purchaser that the vehicle has a registration block (VIN Stop) and is not to be registered or operated in California. ARB's Out-of-State Sales Verification Form, or similar document developed by the seller, may be used. All information must be completed and maintained in the fleet records.

ARB will notify DMV of the request for the VIN Stop for the retired vehicle(s). A duplicate of the notification will be sent to the requesting agency.

What documents do I need to keep for a scrapped engine or vehicle?

ARB only requires the engine to be scrapped; the chassis may be resold. Documentation includes contracts, sales receipts, engine label, etc. The engine core must be destroyed. A scrapped engine can be kept on site for spare parts provided that the engine core is not re-usable. If the agency is scrapping the entire vehicle, an online VIN Stop Request Application Form can be submitted to ensure the scrap yard does not resell your vehicle.

We sell our vehicles through an auction house or trade them in at a dealership. How do we make sure the vehicle is sold out-of-state?

A municipality or utility that uses a third party to sell an old vehicle can include language within their contract requiring that the vehicle be sold out-of-state. The municipality or utility is still required to notify the ultimate purchaser. The ARB Out-of-State Sales Verification Form can be used by the third party, or directly, to document the sale and notify the buyer that the vehicle is not to be registered or operated in California. ARB recommends a VIN Stop Request be initiated at least one month prior to sell of the vehicle, using the online VIN Stop Request Application Form.

What if we do not comply with the regulation?

Non-compliance with the record keeping requirements of the regulation may result in a penalty of $100 for each day that the records are not kept. Failure to install BACT on engines as required could result in penalties of up to $1,000 to $10,000 per day for each violation, as allowed by the Health and Safety Code. The regulation is enforced by ARB Enforcement staff.

How do I get notified about new tools to help me comply with the Fleet Rule for Public Agencies and Utilities?

To automatically be notified when new compliance assistance tools are developed, sign up for the "publicfleets" list serve, or contact us directly if you have questions.

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