Monday, June 29, 2009

 

 

AGC Presses California Air Resource Board (CARB) for Relief from Costly Rule on Off-Road Diesel Emissions

By Thomas L. Brown, Sierra Pacific West, Inc.; Chair, AGC of America’s CARB Steering Committee

 

In close coordination with the AGC of America, AGC San Diego and AGC California continue to press the California Air Resource Board (CARB) for relief from its costly rule on off-road diesel emissions.   Last December, the AGC of America petitioned CARB to reopen the rule, and also urged the U.S. Environmental Protection Agency (EPA) to deny the Board the federal approval that the Board requires to enforce the rule’s core requirements.  Since then, AGC San Diego and AGC California have persuaded the Board to make an objective assessment of how greatly the recent economic downturn has already reduced emissions from off-road diesel equipment, and to share both the data and the computer model needed to revisit the agency’s original “emissions inventory”.

 

CARB finalized the rule in June of 2008 and sought federal approval of its strict standards for emissions from existing fleets of off-road diesel equipment two months later. 

 

The new standards are for emissions of nitrogen oxides (precursors to ozone) and particulate matter.  These standards are fleet wide averages, and do not apply to individual pieces of equipment, but they steadily decline over a period of eleven years, and in each year in which a construction contractor cannot meet the standards, the firm has to retrofit, re-power, replace and/or retire a certain percentage of its horsepower.  When it finalized the rule, the state estimated that the cost of compliance would be $3.4 billion.  The state’s construction industry originally estimated that the cost would reach $13 billion, and its latest estimates are even higher. 

 

This spring, the new rule’s reporting requirements started to take effect, and the Board has now amassed a wealth of new data on the off-road equipment in the state’s construction industry.  More importantly, the agency has agreed to share that data with AGC San Diego and AGC California and to work with us toward an October deadline for determining what it says about current emissions from off-road diesel equipment.  Both the agency and the chapters now have detailed information on more than 97,000 pieces of off-road equipment throughout the state.  With the computer model that the state used to make its original “emissions inventory” also in hand, we are aggressively reviewing the new data and seeking to resolve any doubt about the impact that the recession has already experienced.

 

AGC San Diego and AGC California met with the agency staff in mid-April and again in mid-June, and it appears that the agency is willing to postpone any decision on AGC of America’s petition to reopen the rule at least until the agency and the association can take a hard look at all of the new data.  Major issues are far from resolved, and we have made a point of retaining all legal options, but in recent meetings, the agency staff has been forthcoming and generally cooperative.   Both sides understand that the October deadline is rapidly approaching.  As it does, the ongoing discussions are certain to intensify.  Stay tuned!

 

 

Diesel Emissions Task Force Discusses Compliance Relief Efforts- CARB in San Diego on July 23 to Consider Changes

 

AGC’s Diesel Emission Task Force met last week to review the legislative changes to California Air Resources Board’s (CARB) off-road diesel emissions rules that give contractors a break due to the bad economy.  The task force also reviewed additional provisions that are being proposed by CARB staff to “offset the loss in emission benefits due to the legislatively directed changes.”

 

The Budget Bill signed by Governor Schwarzenegger on February 20, 2009 provides a credit for reduced activity by large contractor fleets, specifically additional flexibility during 2010 to 2013.  These fleets will be allowed to take credit for reduced operating hours and retired equipment.

 

Some of the additional provisions proposed by CARB include:  Exempt vehicles that are retrofit early from future turnover; double credit for NOx retrofits; repower credit; and extended double retrofit credit for small and medium fleets.  These would be voluntary incentives.

 

CARB is scheduled to be in San Diego on Thursday, July 23 to consider adopting the additional provisions.  A hearing will begin at 9:00 AM at the County Administrative Offices at 1600 Pacific Highway, 3^rd floor.

 

The Diesel Emissions Task Force has directed our consultant Sean Edgar to prepare a Guidance Document (click here) to assist you understand how to calculate and apply the credit for reduced operating hours and retired equipment.  We highly recommend that large contractors perform the data collection and calculate the amount of credit they can apply (click here). This will allow contractors who can attend the July 23 hearing to prepare their testimony.  The Task Force will have additional information on a show of force for the July 23rd hearing.

 

Questions on the Guidance Document can be directed to Sean Edgar, Project Manager at CleanFleets.net at 916-718-7050 or Sean@CleanFleets.net

 

 

Volunteers Sought for AGC’s New Local Government Liaison Program

By Brad Barnum, Vice President Government Relations

 

Would you like to help AGC communicate with public decision makers?  Are you interested in creating relationships with the 96 public agencies throughout San Diego County?  Do you want to get more involved in the political process?  If yes…please read on about a new program at AGC…

 

In an effort to further the working relationships with local elected officials and decision makers throughout San Diego County, AGC has created a “Local Government Liaison” Program.  AGC’s Board of Directors approved of this volunteer program to engage members who may want to help AGC develop and maintain direct lines of communications with county, city, and public agency decision makers

 

Currently, AGC has formal Liaison Committees with the City and County of San Diego, Airport Authority, Caltrans, Navy, Port of San Diego, and the County Water Authority.  These committees meet 2-4 times a year to allow for an open dialogue between contractors, subcontractors, material suppliers, etc., and public agencies.  This leads to successful construction projects which utilize public tax dollars in an efficient and effective manner.  Similar “formalized” working relationships do not exist in the other 17 cities and the other 70+ public agencies within San Diego County.  A complete list of the public agencies can be viewed by clicking here.

 

This Local Government Liaison Program (administered by the Government Relations Committee) will allow AGC members to participate in government relations and political action activities will create an informal dialogue between AGC, its members, and public agencies, and it will provide an effective monitoring system.

 

We have received quite a bit of positive feedback about this program from a number of AGC members who may personally or professionally know a public decision maker in San Diego.  We also know that more and more members want to get involved in the political process.  This Local Government Liaison Program will provide that opportunity.

 

Some of the duties of a “volunteer” would include: Monitor agency actions (review website, agendas, bios, and possibly attend meetings (i.e. City Council meeting); visit with decision makers; provide information, such as an AGC Annual Report or a list of “hot topics”; encourage decision makers to engage AGC whenever possible.  A “team leader” will be assigned to each entity, and it is anticipated that there will be at least two volunteers for each public agency.

 

There are a few requirements to be a “volunteer” that we should go over.  You must be an AGC member in good standing, live in or adjacent to, or have business interests within the local jurisdiction, and must be diplomatic and have good communication skills.  If you fit those perimeters and would like to volunteer, simply click here, put a check mark next to the public agency(ies) you are interested in, fill in your name, company, home and business address, phone number, and e-mail, then electronically fax the document to AGC. (If it doesn’t allow you to electronically e-mail the form to Brad Barnum, please print and fax or scan to Brad at (858) 558-8444 or bbarnum@agcsd.org.)

 

For those of you who sign-up, thank you in advance for assisting with our government relations and political action activities.  We will be in contact with you in the coming weeks for an orientation meeting.  For those who still have questions about the program, please feel free to contact me at bbarnum@agcsd.org or at 858-731-8158.

 

 

Call to Action - Local Transportation Projects at Risk in Current Budget Proposal!

 

There is a proposal in the current state budget to “raid and take” county and city funds dedicated to transportation, and it is important that you contact your state legislators and the Governor immediately and express opposition.

 

The Legislature is going to vote to "take" $986 million of the local share of the gasoline excise tax from counties and cities and use the funds instead for transportation-related bond debt service in 2009-10 and "take" an additional $745 million in local gas taxes for debt service in 2010-11 and not pay it back. 

 

The Department of Finance has also proposed to delay or suspend the first two quarters of the local portion of Prop 42 (state sales tax revenue on gasoline dedicated to transportation) in 2009-10, equivalent to another $288 million. The proposal is to payback these funds to local governments in May, 2010, but it is not known where the repayment money will come from.

 

These actions will virtually eliminate any local street and road projects for the rest of this year and well into 2010 and 2011.

 

Call to Action: We have prepared letter for you to e-mail or mail to your State Senator, State Assemblymember, and to Governor Schwarzenegger.  Please click on the following link below to begin: 

Issue Alert - Stop the raid on transportation funds

 

It only takes two minutes…simply fill in your name, home and e-mail address then click "continue".  You will then be asked to send it electronically, or print copies to mail. 

   

If you have any questions or need assistance, please contact Brad Barnum, AGC's Vice President Government Relations at bbarnum@agcsd.org or at 858-731-8158.

 

Thank you in advance for your assistance with our political action activities.

 

 

Mandatory Water Use Workshop Scheduled for July 13

 

As we reported to you earlier this month, the City of San Diego instituted a Level 2 Drought Alert effective June 1.  With that, comes some mandatory water use restrictions…some hitting the construction industry.  A full list of the restrictions can be viewed at www.sandiego.gov/water.

 

The City's Water Department provided a brief overview of the restrictions at the City Liaison Committee meeting on June 3.  It became quite clear that there needs to be more clarification on two of the restrictions: 1) Use of recycled or non-potable water is required for construction purposes when available; and 2) Construction operations will not use water obtained by a fire hydrant meter for uses other than normal construction activity. 

 

An additional requirement…according to Alex Ruis, Assistant Director of the City’s Water Department, “each firm must train an employee to oversee the use of recycled water, which is non-potable, and statutes require a trained expert ensure it is used properly.”  Again, more clarification is needed as to the financial impact of this requirement and how it would be implemented.

 

A workshop with the City's Water Department, the Public Works Department, and Field Engineering staff has been scheduled for Monday, July 13, 1:30 - 3:00 PM at the AGC.  If you are interested in attending, please e-mail Brad Barnum at bbarnum@agcsd.org.

 

 

“Rock the Recession Away” FREE!!! AGC Mixer Featuring Rockola…AGC Celebrates the End of the Recession

By Jim Ryan, AGCSD Executive Vice President

 

WOW!  The AGC’s Construction Leadership Council, our Committee that gives those beginning their careers in the industry the opportunity to participate in the AGC, has really stepped up!!  They found more sponsorship funding for the “Rock the Recession Away” Rockola Concert at the AGC on Friday July 10^th. 

 

The result….the mixer is now free of charge for all members and their guests.  So free beer, free wine and soft drinks, free burgers and brats and a free concert by America’s Classic Rock Experience….Rockola. Check them out at www.rockola.com.  CLICK HERE FOR REGISTRATION FORM.

 

Members that have paid will get their registration fees back courtesy of the CLC!

 

AGC Mixers are an opportunity for the industry to bring their staff to an event without a cost and to allow them to meet their customers or potential customers.  It is also an opportunity for employees of the general contracting firms to meet subcontractors and suppliers that are so critical to their success in these difficult times. 

 

I have been through a number of recessions, and those firms that emerge from the recession as the most successful firms are those that paid attention to marketing during the recession.  With that being said, we have made a special effort to invite those AGC member firms that have been awarded work or are competing for the upcoming military projects that are scheduled for the San Diego area. Over $3 billion of military projects are scheduled to be awarded beginning July 1^st, 2009 in the San Diego area.

 

AGC Mixers are designed to give members the opportunity to stop by after work and stay for an hour, or for the entire event.  They are very informal, and the dress code is whatever you have on for work that day.

 

This Mixer will also give member’s employees an opportunity to tour the AGC offices and the apprenticeship training facilities.  This is a great way to gain an understanding of programs and services that are available for all members.

 

Finally, we intend to invite the media to the event.  AGC 2009 President Kevin Elliott Roel Construction Co., Inc., and members of the Board of Directors will be interviewed, and they will make sure that the message is “the recession is ending,” and now is the time to build!!!

 

So.....AGC members….you have no excuse.  Let’s make sure the media understands that the recession in our industry has been “rocked away” effective July 10^th, 2009.  Please complete the registration form and feel free to invite anyone from your office or any prospective member…..and we encourage spouses and friends of your employees to also attend.

 

Thank you again to our Sponsors:

Bergelectric Corporation

J.R. Filanc Construction

Morley Construction Co.

Marks, Golia & Finch, LLP

Hands on Labor

AGC Affiliate Council

 

Let’s show San Diego that we have “Rocked the Recession Away” with a great turnout for this very fun event!!!!

 

AGC Events

 

AGC Holiday Dinner Dance Room Block now Available

 It’s time to reserve your rooms at the Hotel Del Coronado for the AGC Holiday Dinner Dance on Saturday, December 5, 2009.

 

Rooms at the Del really do go fast, so it’s not too early to make your holiday plans now. Once our room block (at the special rates) is sold out, the prevailing rates will apply.  Click here for the procedures in making your room reservations with the hotel. 

 

Contact Rae Krushensky at raek@agcsd.org with any questions.

 

 

AGC Affiliate Day Golf Spots Sold Out, but Sponsorship Opportunities Still Available ~ Space for 1 Exhibitor Available!

Over 300 have registered for AGC’s Affiliate Day Golf Tournament, which will be held Monday, August 3^rd at Sycuan Resort (Singing Hills) Country Club.

 

However, for those of you interested in an outstanding marketing opportunity… 1 Exhibitor space is still remaining, (first come basis), please contact Brad Barnum at bbarnum@agcsd.org (Direct Line: 858.731.8158).

 

Sponsorship opportunities still available, including….

 

1 Course Exhibitor spot

Beverage Sponsorship

Contest Sponsorship

Raffle Contribution

 

Members are encouraged to attend the post golf cocktail party and dinner.  Reservations can be made for “Banquet Only” by CLICKING HERE.

 

This year, all proceeds from the AGC Affiliate Day will be donated to the AGC Education Trust, and will be used to finance scholarships, Summer Jobs Program, etc.

 

 

AGC Build San Diego – November 5th

CLICK HERE FOR BROCHURE

 

The deadline for submitting an application is August 28, 2009.  Questions…contact Rae Krushensky at raek@agcsd.org or 858-731-8157.

 

 

All meetings at the AGC office at 6212 Ferris Square unless indicated otherwise

 

JULY MEETINGS

July 1 – County Liaison - 1:00 pm

July 9 – Specialty Contractors’ Council – 11:30 am

July 16 – Meetings & Events – 12:00 pm

July 31- Technology Trends in Construction – 12:00 pm

 

VOLUNTEER FOR A COMMITTEE

 

If you are interested in participating in a committee this year, CLICK HERE.  There are 22 AGC committees, and several that may sound interesting to you in which you may want to be involved. Meet new people, network with other AGC firms, and be a part of a “team!” 

 

CLC’s “Rock the Recession Away Mixer…………………………..July 10 REGISTRATION

 

AGC Day at the Races……………………………………………….…July 24 - SOLD OUT

 

AGC Affiliate Day Golf……………………………………………….…August 3 - SOLD OUT

 

Build San Diego- Hilton San Diego Bayfront.............................November 5, 2009  

  “Call for Entries” Brochure (Submission Deadline August 28^th)

 

AGC Annual Holiday Dinner Dance…………………………………December 5, 2009