Despite AGC of America's strong objections, on July 26, the California Air Resources Board (CARB) adopted new diesel engine exhaust standards for construction equipment already manufactured and sold to the construction industry. These so-called "in-use off-road diesel rules" eventually will force older equipment out-of-service and require construction firms to spend billions on new machines and/or engine retrofits. The California rules far surpass the emissions standards already set by the federal government.
California has unique authority under the federal Clean Air Act to regulate air emissions from off-road equipment. Other states do not have this authority but are permitted under the Clean Air Act to adopt any new emission standards that California promulgates. Many of the states currently struggling to meet national ambient air quality standards (NAAQS) for particulates and ozone may look to adopt California's new rule.
CARB unanimously approved the originally proposed in-use off-road diesel rules, with minor changes, just one day after AGC submitted 96-pages of detailed comments on the economic and technological barriers to meeting the standards. Those comments followed AGC's initial letter submitted in May, which lays out the legal and procedural requirements that CARB must meet under both federal and state law to take this action.
For well over a year now, AGC has been studying California's rulemaking effort. Recognizing its potential nationwide impact, AGC has worked closely with – and has provided legal support to – AGC of California, AGC-San Diego Chapter, and the other members of the California-based Construction Industry Air Quality Coalition.
AGC is currently evaluating its legal rights and options, and will continue to work hard to keep the construction industry economically viable and to prevent lost jobs and delays in the completion of important infrastructure projects.