California Air Resources Board "Postpones" Emissions Rule Implementation- Agrees to AGC Request for Public Hearing

The California Air Resources Board (CARB) announced that it has postponed the implementation of its off-road equipment rule which was scheduled to go into effect on March 1, 2010 because it has not yet received approval from the US Environmental Protection Agency (EPA) to move ahead with enforcement. In making the announcement, however, CARB agreed with AGC's request to hold a public hearing on the question of whether the off-road regulations should be further modified to account for the down economy and subsequent emissions reductions. AGC has presented CARB with substantial empirical data demonstrating that the downturn in California's economic conditions and the resulting drop in construction activity have made the rule unnecessary. AGC has pointed out that California's own inventory data makes clear that off-road equipment operators will be well under the state's aggressive diesel emissions limits for years to come without this rule.  Mike Kennedy, AGC's general counsel, said the following about CARB's action: "AGC appreciates the opportunity to publicly air our concerns and expect Board officials will ultimately agree to significant changes to their off-road diesel rule.  However, yesterday's decision to 'delay' enforcement of the rule until a federal waiver is issued is as legally meaningless as it is economically damaging.  By committing to begin enforcement as soon as the federal government allows, the Board is only acknowledging legal reality, not providing relief."   Unless blocked, the CARB rule will require California's contractors to retrofit, repower, retire and/or replace much of their off-road equipment. The Federal Clean Air Act prohibits other states from implementing their own off road diesel emissions rule but allows them to adopt the California rule.  A study conducted by AGC shows that 32 states, including Arizona, Georgia, Illinois, Maryland, New York, Pennsylvania and Texas, are poised to use the California requirements. Because of the impact on contractor's nationwide, AGC joined with the AGC of California and San Diego AGC Chapter in a collective effort to stop the rule or significantly modify it.