In July of 2007, the California Air Resources Board (CARB) exercised its unique authority to set standards to reduce emissions of both particulate matter (PM) and nitrogen oxides (NOx) from existing fleets of off-road diesel equipment in the construction industry. To that end, the rule sets forth a series of steadily declining emission targets. Each year, the regulated fleets have to either meet their targets or turn over a certain percentage of their horsepower. The rule also imposes recordkeeping, reporting and labeling requirements on the regulated fleets, and restricts idling time.
AGC of America, AGC of California and the San Diego Chapter (collectively "AGC") were actively involved in the initial rulemaking process, submitting lengthy comments on the original proposal, and explaining the harm that such a rule could cause. To little avail, AGC submitted four separate sets of comments, affidavits and expert reports on the many serious issues that the rulemaking had raised. Among other things, AGC contested CARB's estimate of the cost of compliance with the rule. CARB put that cost at $3.4 billion. AGC's experts put the cost at $13 billion.
For more than two years, AGC pressed CARB to revise or repeal the rule. Over that time, AGC filed two petitions to reopen the rulemaking, made multiple demands for public records, and completed two detailed studies of the emission estimates that formed the starting point for the rule. AGC also lead an industry-wide effort that brought forth: a CARB hearing on AGC's second petition; draft state legislation to compel CARB to revise the rule; multiple meetings directly with the Board and its staff; meetings with the Governor's staff; and multiple press releases and other press events.
Initially, AGC succeeded in persuading CARB (1) to delay its enforcement of the rule, (2) to abandon its original estimates of the emissions from the regulated fleets and (3) to make at least some changes to the rule. However, AGC continued to press CARB to go much further. Finally, in late 2010, CARB admitted that its original "emissions inventory" was far too high and that it needed to make changes. In the end, the CARB staff came remarkably close to agreeing with the results of AGC's emissions study, which found that CARB's original numbers were off by a factor of 3.5 (in other words, CARB overestimated actual emissions by at least 350 percent).
In December 2010, CARB adopted a series of sweeping amendments to its controversial rule on off-road diesel emissions. The amendments push the original deadlines for construction contractors and other fleet owners to meet the rule's emission targets back a total of four years. The amendments also cut the percentage of the horsepower that fleets have to turn over (i.e. retire, repower, rebuild, retrofit or declare to be "low use") in any one year, and they expand an existing exemption for low-use vehicles. These amendments are the direct result of AGC's success in challenging the emission estimates that formed the foundation for the rule.
CARB estimates that the amendments to its off-road rule will save the regulated fleets $1.5 billion. The construction industry's original estimate of the cost of the rule was close to $13 billion, and if that number was anywhere close to accurate, then the amendments to the rule may actually save industry as much as $9 billion over the life of the rule.
CARB cannot legally enforce the emission targets included its rule, or the related requirements for the turnover of existing equipment, until EPA approves of those targets. AGC has made a total of eleven filings with EPA, participated in an EPA hearing on California's request for federal approval to enforce the rule, and held several meetings with the EPA staff. EPA has yet to make any decision. Most recently, on August 21, 2012, EPA announced a third opportunity for a public hearing and comment on CARB's request for permission to enforce its now amended off-road diesel engine emission standards. AGC testified before EPA at the hearing - noting that in light of the AGC-negotiated revisions to its off-road diesel emissions rules, AGC of America believes that CARB's request for an EPA waiver is reasonable.
California's off-road rule has nationwide implications. Out-of-state contractors working in California must adhere to the rule. In addition, AGC estimates that approximately 30 other states may well have interest in adopting the California standards to reduce emissions from in-use, off-road diesel equipment. While the federal Clean Air Act (CAA) generally preempts such state standards, it permits California to adopt and enforce them if the standards are first approved by federal EPA. The CAA also permits other states to adopt and enforce any California emission standards that meet with EPA's approval.
Below you will find a link to the official information that CARB has posted on its website and to several related documents, including the latest articles that AGC has included in its Environmental Observer newsletter.
Official Information on CARB’s Off–road Rule
- California Air Resources Board's (CARB) Website
(Links to overview and text of regulation, and fact sheets, reporting forms, etc.)
AGC's First Petition to Reopen the Rule
- AGC’s First Petition to Reopen California’s Rule on Off–road Diesel Emissions
(12–15–08) - AGC’s Press Release on its First Petition to Reopen California’s Rule
(12–15–08)
AGC’s Second Petition to Reopen the Rule
- AGC’s Second Petition to Reopen California’s Rule on Off–road Diesel Emissions
(1–11–10) - AGC’s Press Release on its Second Petition to Reopen California’s Rule
(1–11–10)
AGC’s First Analysis of CARB’s Original “Emissions Inventory”
- AGC’s First Analysis
(12–3–09) - AGC’s Press Release on its First Analysis
(12–8–09)
AGC’s Second Analysis of CARB’s Original “Emissions Inventory”
- AGC’s Second Analysis
(4–21–10) - Technical Paper in Further Support of AGC’s Second Analysis
(4–19–10) - AGC’s Press Release on its Second Analysis
(4–21–10)
CARB’s New (2010) “Emissions Inventory”
- CARB’s New “Emissions Inventory” for Off–Road Equipment
(8–31–10) - AGC’s Press Release on CARB’s New “Emissions Inventory”
(8–31–10) - AGC’s Slide Presentation on CARB’s New Emissions Inventory
(8–31–10)
EPA’s Notices of CARB’s Request for Federal Approval
- EPA’s First Federal Register Notice of California’s Request for Approval of Its Off–Road Rule
(10–7–08) - EPA’s Second Federal Register Notice of California’s Request for Approval of Its Off–Road Rule
(3–12–10) - EPA's Third Federal Register Notice of California's Request for Approval of Its Off-Road Rule
8-21-12)
AGC’s Major Submissions to EPA
- AGC’s First Set of Comments on CARB’s Request for Federal Approval
(12–19–08) - AGC’s First Follow–up to its First Set of Comments
(8–10–09) - AGC’s Second Follow–up to its First Set of Comments
(1–27–10) - AGC’s Second set of Comments on CARB’s Request for Federal Approval
(5–18–10) - AGC’s First Follow–up to its Second Set of Comments
(8–16–10)
AGC’s Testimony Before EPA
- AGC’s Testimony Before EPA –– Delivered by Jon Cloud of Jon Cloud, Inc.
(4–14–10) - AGC’s Press Release on AGC’s Testimony
(4–14–10) - AGC’s Testimony Before EPA – Delivered by Michael Kennedy of AGC of America
(9–20–12) - AGC’s Press Release on AGC’s Testimony
(9–20–12)
Amended Off-road Rule
- Amended Off-road Rule Text (EXIT to CARB website)
- AGC's Press Release on Amended Off-road Rule
(10-29-10) - AGC's Press Release on CARB's Proposed Changes to Its Off-road Rule
(10-7-10)
Articles Recently Appearing in AGC’s Environmental Observer
- California Air Resources Board Approves AGC-negotiated Revised Off-Road Diesel Emissions Rules
(12-21-10) - California Formally Proposes Sweeping Amendments To Controversial Rule on Off-Road Diesel Emissions
(11-10-10) - Revised Emissions Rule Provides Relief for Construction Workers
(10-29-10) - AGC and CARB Reach Agreement to Delay and Ease State's Off-Road Diesel Rule
(10-8-2010) - AGC Members Call on California to Repeal Off-Road Rule
(9-13-2010) - California Admits to Vastly Overstating Construction Emissions Following AGC's Efforts
(9-8-10) - California Air Resources Board Concedes Off-road Rule Not Needed to Meet Emissions Goals
(8-31-10) - California Seeks Meeting with AGC on Emissions Data Supporting Off–road Diesel Rule
(6–22–10) - Emissions from Off–Road Diesel Equipment Are Less Than 28 Percent of Estimates
(4–28–10) - AGC Member Tells EPA: Diesel Emissions Rule Risks Workers' Lives
(4–28–10) - Acknowledging Mistakes, California Air Resource Board Agrees to Change Costly Rule on Off–Road Diesel Emissions
(4–29–10) - California Delays Enforcement of Off–road Diesel Engine Emissions Standards, Agrees to AGC Request for Public Hearing
(2–14–10) - AGC Calls on California Air Officials to Delay Off–Road Diesel Deadlines; New Data Shows Emissions Targets Already Being Met
(1–14–10)