The California Air Resources Board Knocks the “Wind” Out of the Construction Industry
By Jim Ryan AGCSD Executive Vice President 

On Monday of last week, the California Air Resources Board (CARB) Staff issued the latest version of their “Proposed Regulation for In Use Off-Road Diesel Vehicles”.  This version was much anticipated by the construction industry because it was to be a follow up to an earlier version that was heavily critiqued by the industry.  We all thought the CARB staff would respond with a proposal that recognized the difficulties this whole concept is imposing on the industry. Instead, the proposal issued on Monday was the equivalent of a well placed punch in the stomach…..most of us who have read it are still gasping for air. 

Monday Morning Quarterback has previously addressed the upcoming Off-Road Diesel Toxics Control Measure that is being written by the staff of the California Air Resources Board (CARB).  This measure has recently been creating a great deal of “stomach acid” throughout California’s construction industry.  Many say that this effort to curb the allegedly dangerous emissions that are produced by the industry’s off road diesel equipment (i.e. most of the heavy equipment used on construction projects) will put many construction firms out of business.

AGC has been engaged on this issue for several years.  AGC of California and AGC San Diego are part of the Construction Industry Air Quality Coalition (CIAQC) which is an association of associations that is representing the industry on this and other similar matters. Please understand that regulations like this one take years to develop….we have not held seminars or written a number of articles about the issue because the regulation and how it will affect the industry was a moving target.  Until now, we would have been speculating…..and possibly leading firms into making investments in their equipment that would have not been correct.

What CARB is now proposing is an engine replacement rule….for those of you familiar with the terminology, they expect all equipment (loaders, dozers, scrapers, skid steers, upper crane engines, etc.) to have Tier 2 engines by 2010 and either Tier 4 engines or Diesel particulate filters by 2014.  For those of you not familiar with the terminology…..those requirements will devastate the construction industry.

CIAQC ( the good guys) has developed a position paper that reduces the emissions to the same level that CARB is trying to mandate, but on a schedule that allows the industry to make the investment without simply eliminating most firms. The position developed by CIAQC is the equivalent of having a root canal with limited Novocain …the CARB proposal is like having a root canal from your neighbor using the pliers he found on the garage floor after he drank beer all afternoon while watching the Chargers (when they lost)!!!!

AGCSD and the rest of the industry are responding.  Last Monday, the special AGCSD Task Force that the Board appointed to head up our effort in the negotiations concerning this issue met for several hours with Mike Buckantz from Justice and Associates, a firm based in Los Angeles.  Mike is a recognized expert on this issue and presented an excellent, detailed summary of the issues, etc.  He was hired to make sure our Task Force ( Scott Erreca, Erreca’s Inc; John Nelson, FCI Constructors; Steve Coker, TC Construction; Mike Carcioppolo, Hawthorne Equipment; Mike Furby, Marathon Construction; Mike Shaw, Perry and Shaw; John Daley, Jr., Daley Corporation; Jim Ryan  and Brad Barnum, AGCSD.) has a thorough understanding of this complex area as the negotiations go forward.  CIAQC has already issued a position paper, retained firms to prepare economic analysis of the impact of the proposed regulation, and retained a number of consultants to advise and assist the industry.

The timetable for this regulation appears to be in the next 6-10 months. Obviously, this will be a major issue for the industry and AGCSD during 2007. 

Stay tuned!!!!  

 

Storm Water Permit Changes Coming – Agencies, Developers and Contractors Beware!

Even with strong opposition from the construction/building industry, public agencies, and other stakeholders, the California Regional Water Quality Control Board, San Diego Region, will likely implement dramatic changes to the current San Diego County Municipal Storm Water Permit (Permit) on Wednesday at a final public hearing. 

The changes to the Permit (and corresponding Fact Sheet/Technical Report/Comments/Responses) are available at:

http://www.waterboards.ca.gov/sandiego/programs/sd_stormwater.html.

The changes to the Permit will significantly increase inspection requirements on local public agencies and will make it more difficult for developers/contractors to comply with water treatment requirements.  They also will put new regulations on such diverse facilities as grocery stores, animal facilities (riding stables, veterinarians, etc.), golf courses, building supply stores, restaurants, gas stations, and individual residences.

Some of the proposed changes in the construction component of the Permit include detaining large quantities of water on-site (hydro modification), building and operating chemical treatment plants for storm water at construction sites (advanced treatment), and new grading limitations.  These changes are expensive, untested, and may unintentionally impair water quality.

AGC wrote a letter in October to the Regional Board expressing our opposition to the proposed changes.  We made it known that current storm water regulations have resulted in increased costs for public agencies, and the new proposals will further increase those costs due to the compliance measures and increased inspection requirements.  Some estimates of the costs to the County and the Cities to implement the unfunded mandates run as high as $250 million over the next five years.

As noted above, these changes to the Permit likely will be approved, so we must take the next step to work with the agencies as they implement the changes in the coming years.  In addition, we must make sure any Regional Board fines received by these agencies are not passed on to the contractor.  AGC continues to push for standard contract language that makes the owner responsible for a Storm Water Pollution Prevention Plan (SWPPP) and the contractor responsible for building whatever is designed by the engineering firms retained by the owner.  The owners have been reluctant to make any changes, but we will continue to make our case as more and more SWPPP requirements are put on contractors.

 

Reminder : AGC San Diego Annual Meeting…..Mayor Sanders to Attend This Wednesday

All AGC members are invited to attend the December 13^th, 2006 Annual Meeting which will be held at the Hilton San Diego Resort on Mission Bay, 1775 East Mission Bay Drive beginning at 11:00 am.  San Diego Mayor Jerry Sanders will address the Annual Meeting beginning at 11:15 am.

After the Mayor’s comments, a lunch will be served, followed by the election of new Board members and the Executive Vice President’s Annual Report to the membership, which will detail AGC activities and finances.

For more information and cost, contact Rae Krushensky at 858-731-8157 

 

2007 Installation of Officers and Member Awards Ceremony - January 23, 2007

As this year winds down, plans are already being made for 2007. We begin the new year with the Annual Installation of Officers (2007 President and new members to the Board of Directors) and the Member Awards Ceremony.  The awards consist of Safety (CSEA) Awards, Contractor of the Year Awards, Affiliate of the Year Awards and Apprenticeship Graduation. This is scheduled for January 23 at the Hilton La Jolla Torrey Pines. 

We are pleased to announce that AGC member “The Hartford” is the major sponsor for this event and have attached a copy of the invitation to this e-mail.

Please note that those who return their completed form by January 8, 2007 receive a $10 per person discount.  Contact Rae Krushensky at raek@agcsd.org or (858) 731-8157 with any questions.

 

December
December 12 - "Building Information Modeling" (BIM) Workshop 
December 15 – HR Mini Conference – see attached
December 19 - Excel Class ... Intermediate – see attached
December 27 – CPR/First Aid – see attached
December 28 - NAVFAC WEBCM

Coming in March, 2007…

March 8 and March 9 – AGC of America and OSHA present “Focus Four Hazards in the Construction Industry” -
Only 50 spots available each day. Go to website http://www.agcsd.org/calendar/safetytraining.htm for a registration flyer.

 

All meetings will be held at AGC unless indicated otherwise

DECEMBER MEETINGS
December 12- Navy Liaison Meeting – Subject to change- 11:30 AM @ Navy Facility
December 12- Education & Training Committee – 11:30 AM
December 13- Toastmasters – 7:00 AM at Roel’s Training Center
December 14 – Specialty Contractors Council 11:00 AM @ AGC 

 

Save The Dates: 
THIS WEEK: December 13 – AGC Annual Meeting –Hilton Mission Bay
January 23, 2007 – Installation Dinner – Hilton La Jolla Torrey Pines
(Installation of Officers & Directors, AGC Membership Awards, Safety Awards, & Apprentice Graduations)