AGC of America estimates that as many as 32 states are closely following California's controversial effort to implement and enforce first-time emission limits for in-use "fleets" of off-road diesel (ORD) equipment.  If these states adopt identical rules, construction companies across the nation will be forced to pay the high cost of installing aftermarket pollution controls on equipment that is currently out in the field, or face replacement and retirement as their only alternatives.  Interested states admit their goal is to reduce off-road emissions of nitrogen oxide (NOx) and fine particulate matter (PM2.5) at a much faster rate than what is required by federal "Tier 1-4 standards," which set pollution limits for newly-manufactured off-road diesel engines and fuel -- but do not mandate any reductions from existing engines.For several years, AGC of America and its California Chapters have been strongly opposing the ORD rule and pressing the California Air Resources Board for relief (click here).  At the same time, AGC is actively warning its Chapters in the other 49 states that the ORD rule could set a de facto national standard that would impose an excessive, and in some cases insurmountable, economic burden on the already struggling construction industry.Approximately 17 states have already adopted one or more of California's strict emissions standards, primarily to obtain the additional pollution reductions needed to comply with national ambient air quality standards (NAAQS).  California's ORD rule is designed to quickly and steadily reduce emissions of ozone (NOx contributes to the formation of ozone) and PM2.5.  California's effort comes at a time when the U.S. Environmental Protection Agency (EPA) has just set new and more stringent standards for both of these pollutants.In the near term, almost all 50 states have to write clean air "state implementation plans" (SIP) to show EPA how they will meet the tighter federal NAAQS for ozone and/or PM.  Approximately 19 states currently have air pollution problems similar to California (and that the ORD rule is designed to address) and, at a minimum, those states will likely need to access the regulatory tools already available to California -- including laws designed to reduce pollution from existing fleets of construction equipment.  Any state that fails to develop an "approvable" SIP can be subject to numerous federal sanctions, including emissions caps limiting economic development and the loss of federal highway transportation funds.  Unfortunately, neither scenario is promising news for the business of construction.The Clean Air Act (CAA) generally prohibits state and local governments from setting engine emission standards for off-road diesel equipment (including diesel retrofit requirements) -- a concept called federal preemption.  The statute, however, makes an exception for the state of California.  To be clear, California is the only state that has the authority to set emission standards for engines in construction equipment that are more aggressive than federal standards, including retroactive requirements.  But once California sets such standards, and the federal government approves of them, other states have the option of "opting-in" to California's program.  Any state that elects to "opt-in" to California's ORD rule must adopt, implement and enforce (and potentially amend) it exactly as dictated by California lawmakers.The environmental movement has targeted the construction industry as a major contributor of airborne pollutants and many states appear to be receptive to the concept of retroactive equipment "retrofit" requirements.  To this end, AGC has observed an increase in the number of state construction contracts for public works projects that include bid preferences and/or specifications mandating reductions in diesel emissions. (The legality of this practice is questionable and the key issue of whether or not states and localities can accomplish indirectly what they can not do directly will certainly be the subject of future litigation.)  Once California unlocks the door to broad, statewide standards for off-road diesel emissions, identical standards are likely to come pouring through it.  AGC is very concerned about the costs that these standards will impose on the construction industry.Following are answers to the most frequently asked questions about states likely to adopt California's off-road engine emission standards.  Click here to view where each state currently stands on this issue.Q1 - Which states are currently or previously in nonattainment of the PM2.5 and/or the 8-hour ozone NAAQS? In addition to California, 33 states are currently or previously in nonattainment of the PM2.5 and/or 8-hour ozone standards, and the federal government predicts that even more states will exceed the new and more stringent standards already scheduled to take effect over the next few years.  The Clean Air Act (CAA) requires the U.S. Environmental Protection Agency (EPA) to designate areas as attainment (meeting the standard), nonattainment (not meeting the standard) or unclassifiable (insufficient data to classify) after the agency sets a new national ambient air quality standard (NAAQS), or revises an existing standard.For more information on the process EPA and the states follow to designate areas as in attainment or nonattainment for the ground-level ozone standards established in 1997 and in 2008, as well as links to nonattainment area maps, log on to http://www.epa.gov/ozonedesignations/.  The designation web page on the standards established in 1997 and 2006 for fine particle pollution is online at http://www.epa.gov/pmdesignations/.  The EPA Green Book, which lists nonattainment areas for all NAAQS is online at http://www.epa.gov/oar/oaqps/greenbk/index.html.Q2 - Which states are legally qualified to adopt California's ORD rule?Based on AGC's research, almost every state is (or will be) legally qualified to adopt California's ORD rule as a result of EPA's continual process of identifying and revising federal NAAQS.  The CAA allows any state that has ever had a state implementation plan (SIP) approved by federal EPA for any nonattainment area to adopt California's stronger motor vehicle standards (Section 177); the Act further allows such states to adopt California's off-road vehicle and engine standards (Section 209(e)(2)(B)). The one exception is that the Act prohibits California and other states from adopting emission standards for new engines under 175 horsepower used in construction equipment (Section 209(e)(1)).States with air pollution problems generally have two choices when deciding how to regulate emissions from mobile sources: They can follow the federal standards or the California standards. States that seek to adopt California's ORD rule must consider the following--Non-California states must have authority under their own state law to adopt California's regulations.The CAA allows non-California states to adopt and enforce off-road emission standards "identical" to California's regulations (Section 209(e)(2)(B)). This identical-standard also explicitly requires that implementation and enforcement are identical to California's for off-road emissions (Section 209(e)(2)(B)(i)).In addition, a state choosing to adopt California's standards for off-road sources must notify the EPA administrator of its decision, although EPA has no approval role in the adoption of the state standards (Section 209(e)(2)(B)).Finally, opt-in states must provide two years of "lead time" following adoption of any of California's mobile source emission standards before such standards take effect in their own state (see Q5 below).Q3 - Which states have already expressed an interest in California's ORD rule?According to the EPA Green Book, the following states have air pollution problems similar to California's problems (i.e., they have nonattainment areas for both the 8-hour ozone and PM2.5 NAAQS) and they are likely to adopt California's ORD rule: Connecticut, Delaware, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia - plus the District of Columbia.  In addition, although Alabama and West Virginia were recently re-designated by EPA as meeting the 1997 8-hour ozone standard, these states will be (once again) in nonattainment for both the 2008 ozone and 2006 PM2.5 NAAQS once "official" designations are made under the new, more stringent standards.In recent news, diesel experts tracking the issue (such as John Deere's Joe Mastanduno, whom the April 2009 edition of Construction Equipment Distribution referenced) have specifically identified the following states as areas to watch--A group of 13 states in the Northeast, expected to adopt the regulations together;The Midwest, specifically around the Chicago area, the Great Lakes region including Wisconsin and Ohio;Texas;California boarder states;The Southeast, like Georgia and Florida; andThe Northwest, like Oregon and Washington.Q4 - Which states have already adopted one or more of California's other engine emission standards?California has taken advantage of its unique authority under the Clean Air Act and has set its own emission standards for everything from cars and SUVs to diesel trucks from lawn and garden equipment to personal watercraft.At least twelve states - Connecticut, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington - have already adopted the California emissions low-emission standards for passenger vehicles.There are a few states that are NOT on the list above that have adopted California's standards for diesel trucks, which are identical to but serve to reinforce the federal standards, like Delaware, Georgia, North Carolina, Texas - as well as Washington, DC.  And at least New York has adopted California's standards for personal watercraft, such as jet skis.In addition, at least 19 states have adopted, or are in the process of adopting, California's strict new rules to reduce greenhouse gas emissions from cars, including Arizona, Colorado, Connecticut, Florida, Illinois, Iowa, Maine, Maryland, Massachusetts, Montana, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Utah, Vermont and Washington.Q5 - What is the "lead time" requirement for California's ORD rule to take effect in other states? According to the Clean Air Act and EPA's "clarifying" regulations, California must first adopt its standards, and then other states may adopt the same standards provided that 1) the other state's rule does not take effect until two years after its adoption by that state, and 2) the rule is the same as the one ultimately authorized by EPA's waiver.Specifically, CAA Section 209(e)(2)(B) provides for a two-year period from adoption by another state of a regulation identical to a regulation for which California has obtained a waiver before the regulation may take effect in that other state.  EPA's off-road regulations, as revised on October 8, 2008, provide some clarification of the Clean Air Act provisions:(a) ... any state other than California that has plan provisions approved under Part D of Title I of the Act (42 U.S.C. 7501 to 7515) may adopt and enforce emission standards for any period for off-road engines and vehicles subject to the following requirements:(1) The state must provide notice to the Administrator that it has adopted such standards.(2) Such standards may not apply to new engines smaller than 175 horsepower that are used in farm or construction equipment or vehicles, or to new locomotives or new engines used in locomotives.(3) Such standards and implementation and enforcement must be identical, for the period concerned, to the California standards authorized by the Administrator.(4) The state must adopt such standards at least two years before the standards first take effect.(5) California must have adopted such standards two years before the standards first take effect in the state that is adopting them under this section.40 CFR § 1074.110(a) (promulgated at 73 FR 59033, at 59380)It is important to note, however, that states do not need to wait for the California standards to receive a federal preemption waiver before adopting such standards. EPA and the courts have consistently taken the position that a non-California state may adopt California standards that have not received a preemption waiver but that the state cannot enforce the rules until California wins EPA's approval.For more information on California's ORD rule and AGC's efforts, log on to AGC's web site at http://www.agc.org/carbrule.  Click here to view where each state currently stands on this issue.

On Thursday, August 13, AGC hosted a meeting of real estate and construction stakeholders to discuss the impacts of legislative and regulatory efforts to regulate U.S. greenhouse gas (GHG) emissions from stationary and mobile sources on the industry.  The meeting is the third AGC has convened with this group in the topic of climate change.AGC's CEO Steve Sandherr presented a discussion draft of guiding principles for climate change legislation for the real estate and construction industries and related groups to provide the framework for stakeholders interested in forming a coalition on this issue.  The draft document states concern that "new federal legislation and/or regulations intended to control GHG emissions could increase the cost of building operations, or otherwise deter new construction and/or the renovation of existing buildings and other facilities."In addition to identifying collective concerns with energy and climate change legislation before Congress and with regulatory efforts by the Obama Administration, the group is also working to identify recommendations for Congress to improve the bill.The U.S. House of Representatives approved the American Clean Energy and Security Act of 2009 (H.R. 2454) by a vote of 219-212 on June 26.  AGC opposed the measure due to the negative impacts the measure would have on the construction industry and thoroughly explained the Act's implications here.  The Senate is expected to consider its version this fall. For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org.

October 27 - 29, in Atlanta, GAParticipate in cutting-edge sessions to develop innovative approaches and solutions to managing training and human capital at AGC's HR Professionals Conference and Training & Development Conference, Oct. 27-29 in Atlanta. Register and learn more at www.agc.org/hr_td.Register for this year's combined conferences by October 1 for only $495 (AGC members and Chapter staff only). Attendees are allowed to attend any of the HR or T&D focused tracks and joint sessions to customize their experience.

Few industries rely on effective leadership for success more than the construction industry. With the overwhelming number of activities on any given jobsite, it takes astute leadership to pull them all together. Without it, project safety, profitability and company reputation are at risk. Attending AGC's Leadership in Construction Workshop will help you enhance your individual skills and teach you how to become the most effective leader possible.COURSE DATE & LOCATION                                          November 11-13, 2009 | Cincinnati, OH                          APPLICATION DEADLINEOctober 23, 2009Learn more at www.agc.org/leadershipworkshop.

Save the date for the next AGC Building Contractors Conference January 20-23, 2010 in San Juan, Puerto Rico!  Registration and more information about the meeting will be posted to www.agc.org/BCC as it becomes available.

San Diego, California - September 29-30 - Manchester Grand Hyatt Many negotiators fail to realize that successful negotiating is a talent - a talent that can be improved by learning the right skills. Negotiating doesn't mean tricks and intimidation. The ability to successfully negotiate is a skill that can be learned. In this two-day course, participants will gain valuable working knowledge of negotiating and listening and how it will benefit their relationships, both personally and professionally. Learn more!

Join us for three BIM-filled days in Philadelphia for the Fall BIMForum and the breakout courses of AGC's Building Information Modeling Education Program October 7-9The BIMForum has quickly become the can't-miss event for those interested in the application of virtual design and construction for the AEC industry, tripling in size in the last two years and hailed as wild success by ENR.Join fellow design, engineering and construction professionals and owners October 8-9 to discuss the latest in BIM technology, implementation and collaboration. The Fall meeting's theme is BIM as the Evolving Standard of Care: Driving process transformation for designers, contractors and owners.BIMForum registration is open to anyone interested in discussing how Building Information Modeling is being implemented in the construction industry. Learn more about the BIM Forum here.BIM Education Program Courses - October 7● Course 1-BIM 101: An Introduction to Building Information Modeling● Course 2-BIM TechnologyPresented by AGC of America and the General Building Contractors Association, join us October 7, the day before the BIMForum, for one of two AGC BIM Education Program courses (programs will run concurrently). Learn more about the BIM Education Program here.BIM 101 provides participants with a comprehensive overview of BIM, supported by case studies to help participants learn what BIM is, how it can be used, what the advanced uses are and how to get started. Participants in this program will be eligible to receive 8 AIA Learning Units and 0.8 IACET CEUs when participating in this program.BIM Technology will delve into the capabilities of BIM tools specific to different phases and types of work, delve into benefits of BIM and how they can be realized and detail different approaches to using BIM.Learn more and register here!

Jointly sponsored by AGC and CFMA, the 13th Annual AGC/CFMA Conference was developed in response to a need for programs and workshops designed specifically for financial professionals in the construction industry.The two-day conference is filled with more than 30 interactive sessions, covering the latest industry issues and their financial implications. Get the latest information on:Strategies for Economic DownturnsConstruction Tax UpdateOwnership Transfer TechniquesInvesting in Today's Volatile MarketsRisk ManagementLearn more here!

Section 1512 of the Recovery Act requires information about the project and the jobs it creates, and salary disclosure for certain federal contractors to be reported to the central federal Web site, www.federalreporting.gov.At 12:01 A.M. on August 17, 2009, that website was scheduled to go live and recipients of Recovery funds will be able to register as the first step in the reporting process mandated by the Recovery Act.  To register, recipients must already have a DUNS number and CCR number.Registration will continue through September 30, 2009, with reporting officially beginning on October 1, 2009 through October 10, 2009.  For more information on the reporting requirements contained in the Recovery Act, click here (for federal contractors), here (for federally-assisted work), and here (for more information about the reporting process).  For OMB's guidance and forms associated with reporting, see recipient reporting information.For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

AGC has identified 61 separate programs funded by the American Recovery and Reinvestment Act of 2009 and broken down various building sector-related opportunities, totaling $26.9 billion, here.  AGC's chief economist Ken Simonson contributes to an in-depth discussion of the breakdown of building-related stimulus funding here. Examples of stimulus funding being distributed in the building sector include: General Services Administration has now awarded $1 billion of its $5.5-billion total allotment from the American Recovery and Reinvestment Act of 2009. Read the full ENR article here.The Baltimore Sun reports that the Baltimore Development Corporation has solicited proposals for projects including office buildings, business parks and hotels for the city's more than $30 million in stimulus money.In Tulsa, Okla., the Associated Press reports that education-designated stimulus funds combined with a public private partnership will be responsible for the construction of three early childhood centers.The Capitol Times reports that Wisconsin has received $170.7 million in bonding authority from the ARRA-funded Qualified School Construction Program "for new construction, rehabilitation or repair of school facilities as well as acquiring new land or equipment."The National Institute of Building Sciences' National Clearinghouse for Educational Facilities has broken down the programs involved with school funding here and posts information related to ARRA-related school facility modernization here as it becomes available.