Comment Log Display

Dear Members of the California Air Resources Board:

The California Air Resources Board (CARB) adopted a flawed
off-road diesel regulation this summer that will have a profound,
negative impact on California’s infrastructure rebuilding efforts,
the health of the state’s construction industry and its overall
economy. 

Construction contractors and workers want these regulations to
work for everyone, however this rule lacks clarity, does not take
into account the availability of capital in the industry or the
advancement of engine technology, will result in a downsizing of
construction firms and loss of construction jobs, contains unfair
retroactive requirements and does not accurately reflect the
economics of our business. More specifically, this regulation is
flawed for the following reasons:
Clarity and Comprehensibility:  The regulation is too complex and
lengthy: we do not fully understand it or its effect on our fleet.
Before this regulation, we bought equipment based on what we needed
to do our work. We will have to hire consultants to tell us what we
can and must buy and when we will need to replace, retrofit, or
repower what have.   
Capital-Intensive Industry: The value of our business is tied up
in our fleet of construction equipment.  To meet CARB’s
requirements for newer equipment, we will have sell existing
equipment. This is like a retailer being forced to sell its
building a buy a new one. 
Availability of Technology: The engines we need to purchase to be
in ultimate compliance with this rule do not exist in the market
today and won’t for at least another six years. Due to this, we
will be forced to spend tens of thousands of dollars to retrofit
equipment that in less than ten years we will have to turn around
an replace.   
Rule Forces Downsizing of Capability:  Because newer equipment
costs more than our older equipment, CARB’s rule will force us to
downsize our operations. Downsizing will limit our ability to
perform on contracts and require us to take longer on the projects
that we win. This means the more than $42 billion in infrastructure
bonds to rebuild California passed in 2006 will build fewer
schools, houses and roads.
Unfair Retroactive Requirements:  When we made our purchasing
decisions and other investments, we relied on the standards that
applied to us at the time. It is unfair to require us to retrofit
or replace equipment that was legal when we bought it. With this
rule CARB, for the first time, is regulating the consumer of
equipment rather than the manufacturers.   
Cost Pass-Through: CARB has suggested that the cost of this
regulation will be passed on to our customers. This is
unrealistic. For us to win contracts, we cannot simply pass on the
costs of equipment purchases to our customers. We have to absorb a
significant portion of our own expenses. Increasing our expenses
will overwhelm our already narrow profit margin.    
I want to be clear: (organization/company name) is very supportive
of reducing particulate matter (PM) and NOx emissions from diesel
engines. There is no disagreement that we need to work
collectively to improve the state’s air quality and all of us want
to provide as healthy an environment as possible for our employees
on our job sites, but we need to make sure we do it in away that
keeps the state moving forward and with consideration for both the
environment and the economy. 

Sincerely, 
Ron L. Harder