New Rule Likely to Cost Contractors Millions; Have Significant Impact on U.S. Economy
AGC of America issued a warning to the construction industry during its 2006 Midyear Meeting about the nationwide, economic impact of California’s diesel emissions reduction mandate which, if implemented, could put many construction firms out of business. Session panelists urged AGC members to stay informed and to get involved.
The California Air Resources Board (CARB) is working on a new rule that could render millions of dollars of in-use construction equipment worthless unless it is fitted with emission controls or the engine is repowered. California is the only state that has legal authority from U.S. Congress to enact nonroad engine exhaust standards that far surpass the emissions rules set by the federal government. All other states can opt-in to California’s more aggressive rules – but states must adopt Calif.’s program identically and in its entirety.
During the Midyear session, industry experts, Kenneth Katch, Caterpillar; Gary Rohman, ECCO Equipment Corp.; George Malouf, Emissions Technology; and Dave Sbaffi, Granite Construction explored Calif.’s pioneering role in drafting engine exhaust standards that are more stringent than federal rules. The panelists also presented bottom-line facts about the supply and cost of retrofit devices that regulators want contractors to use, if they want to stay in business.
CARB’s key proposals would require contractors to:
• Comply with increasingly stringent particulate matter (PM) emission reduction targets
• Meet CARB’s fleet average emission target by 2013 or scraping 10 percent of the company’s fleet horsepower per year or replace it with Best Available Control Technology (BACT) until the fleet meets CARB’s target
• Affix a label with an identification number on each piece of construction equipment
• Report annually on every offroad diesel engine.
The session brought to light many of the harmful impacts and concerns surrounding CARB’s proposal, including the potential for devalued company assests, mandated fleet turnover, increased equipment maintenance and cost, increased recordkeeping burdens, lack of “verified” emissions control technologies, inequitable enforcement and possible safety issues.
Source: AGC News & Views