How the CARB Regulations will Affect You!!
By Jim Ryan
AGCSD Executive Vice President 

I know there has been a great deal written in recent months about the California Air Resources Board’s Proposed Off-Road Diesel Regulations, which will be the subject of a much anticipated hearing this Friday when the CARB meets beginning at 8am at the Del Mar Marriot located on 11966 El Camino Real. I also know that the entire subject is confusing at best.  Those of us that have been attending meeting after meeting for the past year or so have an understanding of the subject….but my impression is that both sides of the issue are dealing in a great deal of speculation.  One certainty that has developed from all of this, is a whole new list of acronyms and words that we all are gradually understanding…..CARB, CIAQC, VDECS, PM. NOx, the Moyer funds, retrofitting, repowering, retiring(engines), Tier 1, Tier 2, Tier 3, Tier 4, fleet averaging, etc., etc., etc….. only a very small percentage of the industry was familiar with all of this even a year ago…but these words and acronyms are now part of  the industry!!!

So….what does all of this mean and how will it affect you?

The California Air Resources Board has the authority to issue regulations that can force industries to take action to clean up the air in California….just ask the automobile industry.  It is now the construction industry’s turn!!! 

In 2000, the Board set its sights on our industry.  They announced that they were going to promulgate rules and intended to follow an 18 year timeline to reduce Particulate Matter (PM), a pollutant that diesel engines emit. This 18-year timeline is a very important issue. The entire controversy surrounding CARB’s proposed regulations really comes down to time.

I suspect that nearly everyone in the construction industry agrees that cleaning up the emissions from diesel engines is a good thing…..but how much time is necessary to accomplish the cleanup?

One simple way to achieve the cleanup is to focus regulations on the manufacturers of the equipment.  Just require them to sell only off-road equipment that meets the standards set by CARB and the EPA, and over time….the turnover of equipment in the industry will automatically solve the problem.  This is the basic system that is in place to clean up the auto industry.  The difference is that we all buy cars on a much more regular basis than a contractor buys heavy equipment. CARB insists that this system would be too slow.

The solution they propose is found in the regulation that will be considered Friday.  This regulation requires contractors and any public or private entity that operates heavy diesel equipment (except farmers!) to speed up the process by either putting new engines in their current equipment or by adding Verified Diesel Emission Control Systems (VDECS) to existing equipment.  It also, in effect, requires the forced retirement of the oldest of equipment.  Now all of this is wrapped into a very complicated system that each firm or public entity with a fleet of equipment must meet.  There are benchmarks established in the system on a year-by-year basis.  If the benchmarks are not met, then huge, potentially fatal fines will be levied.

Obviously, time is money.  CARB believes this enhanced schedule will cost the industry about $3 billion…..the industry believes the figure is closer to $13 billion. There are other problems as well.  Taking an engine out of an existing piece of heavy equipment and replacing it with an engine that will help meet the benchmark is not as easy as it sounds.  Guess what….sometimes the new engines just do not fit….and the industry is not convinced that the engines will be available…..also the VDECS, the clean up devices that attach to the engines, may or may not work and many have not even been made.  Simply buying new equipment is not an option….the manufacturers would be hard pressed to supply new equipment in the numbers necessary….even if the industry could afford to purchase all new equipment….and just to make sure we all understand…the industry does not have the resources to afford all new equipment!!!!

So…the bottom line is this….

The industry does not have the financial resources to pay for the accelerated process that CARB is proposing in its regulations.  CARB recognizes this, but is convinced that all the industry will need to do is charge more for its services.  CARB also seems to not recognize the significance of  the value of the equipment in the industry’s bonding and banking relationships.  More time is needed to allow the industry to absorb the “financial hit”.

The technology is not available in repowering, VDECS, or in new equipment to meet CARB’s schedule.  CARB recognizes this, but has chosen to propose implementing the regulation in the hope that all of this will somehow become available.  They built in some language in the regulation that offers relief if the available technology does not meet their timetable…..the industry is convinced that this will cause enormous problems as we move forward.

Anyway…..it is pretty obvious that more time is needed…..and if you attend the hearing this Friday, you will note that speaker after speaker will detail that theme.  The industry has agreed that the cleanup is necessary…..but more time is needed to allow the technology and the manufacturers to meet the demand that will be created and for the industry to meet the financial investment that is necessary.

And finally…..remember…..AGC General Engineering contractors are not the only firms affected…..General Building Contractors and Specialty Contractors will also be included under the new regulation.  This regulation affects everyone!!!!

 Please make sure the industry is represented at the hearing…..sign up to attend (see next article)   

 

 

Continuing Education for Human Resource Personnel

The AGC Human Resource Practices Committee is offering three, 3-Hour Seminars for all members dealing with HR and Employment Issues, including office and field supervisors, foreman, etc.

This Year’s Seminar Topics Include:

·         June 14, Key-Note Speaker:  Linda Aguilar, Deputy Labor Commissioner discussing O.T. Laws and Exempt vs. Non-Exempt Classifying Mistakes.

·         September 20, Employment Law Updates including Meal & Rest Period Rules.

·         December 6, Critical Work Shop for Field Supervisors in Dealing with Problem Employees and Developing Progressive Discipline Procedures

See the registration form attached and fax to Rae Krushensky at 858-558-8444.

 

 

“Politics 101” - Legislative Day in Sacramento, June 13

If you want to see "political action" first hand, please consider attending AGC's Annual Legislative Day in Sacramento on June 13.

Every year, nearly 100 members from AGC San Diego and AGC-California trek to Sacramento to talk "construction" issues with legislators.  This one-day visit to the State Capitol provides an up close view of the legislative process and allows an opportunity for members to hear from legislative leaders, the Governor's Administration, and other political insiders.

We have received some good reviews from our "first timers" on this trip, and we have a number of AGC Board members who attend every year.  That is a good indication this trip to Sacramento is a good one!

Some of the highlights this year include:

• An evening reception on June 12 with Senate Republican Leader Dick Ackerman (Orange County) and members of the Senate Republican Caucus

• Presentations by Assemblymember Pedro Nava (D-Santa Barbara, Chair of the Assembly Transportation Committee), Senator Tom Torlakson (D-Antioch, Chair of the Senate Appropriations Committee), Vicki Bradshaw, Secretary of the State’s Labor and Workforce Agency, and Jack O’Connell, State Superintendent of Public Instruction. 

• The issues to be addressed: implementation of the infrastructure bonds, vocational and technical education, Governor’s “May Revision” of the budget, and labor and education issues. 

We encourage you to participate in our Legislative Day on June 13.  We have attached a memo/registration form that has additional information.  We hope you will consider participating in this informative trip to our State’s Capitol!

*** PLEASE NOTE: Memorial Day, Monday, May 28^th is a “Prevailing Wage” holiday.

 

 

“AGC Education & Training….Building a Solid Foundation”

UPCOMING AGC CONSTRUCTION EDUCATION & SAFETY CLASSES

MAY
Construction Education Classes
Business Succession Planning - May 23
Microsoft Excel Formulas and Functions– May 29^th
EM 385-1-1 - May 31, June 1 Attached flyer

Safety Training Classes
CPR/First Aid- May 30 – CLASS FULL 

JUNE
Construction Education Classes
Microsoft Excel Formulas & Functions – June 12 Attached flyer
HR Mini Series – Begins June 14th
Web CM - June 19
Intro to Prolog Manager – June 21

Safety Training Classes
Scaffolding & Hazard Awareness- June 8 Attached flyer
Trenching & Excavating- June 13 – Attached flyer
Crane Awareness – June 16
OSHA 10 Hour – June 18
CPM Scheduling – June 20
CPR/First Aid- June 27   

Upcoming in July
Sure Trak – July 12
Blueprint 102- July 10
CQM- July 17-18 (Contractor Quality Management)
Fall Protection – July 18

 

MAY
May 22- Construction Education & Training at CTA – 11:30 AM
May 23- Government Relations Meeting – 10 AM
May 24- Affiliate Members Council- 12 PM  POSTPONED

JUNE
June 4 – San Diego Port District Meeting – 11:30 AM at Port
June 6 – Safety Committee Meeting- 7 AM
June 20 – Public Building Liaison Meeting – 7 AM
June 21- Specialty Contractors’ Council Meeting – 11 AM
June 25 – Airport Liaison Committee Meeting 11 AM at Airport
June 27 – County Liaison Meeting – 1:00 PM

 

UPCOMING AGC EVENTS
May 31- June 3- Spring Conference in Napa
June 19 – Baseball Bash and Padres Game – SOLD OUT!
July 20 – Day at the Races
August 6 – Affiliate Day Golf Tournament – Singing Hills
November 1 - Build San Diego Awards