6. Clean Air Act and California What happens in California does not stay in California.

7. Greetings from California The rest of the country is under the regulatory authority of the Federal Environmental Protection Agency, but California has special consideration under the Clean Air Act and can enact its own rules, with EPA approval. These measures deal with criteria pollutants…such as particulate matter…

8. States not in attainmentPM 2.5 Alabama California Connecticut Delaware District of Columbia Georgia Illinois Indiana Kentucky Michigan Missouri Montana New Jersey North Carolina Ohio Pennsylvania Tennessee Virginia West Virginia

9. If your state is not on the list… Thank you very much, that concludes my talk…. But wait….theres more

10. Midwest States with nonattainment areas 8-hour ozone standards Since Wisconsin, for example, fails to meet the Federal 8- hour ozone standards it could be subject to requirements to reduce ozone precursors notably Nitrogen Oxides (NO2)which is covered by Californias new diesel regulations and EPA is getting ready to increase ozone requirements…throwing virtually every state in the pool!

11. California Air Resources Board calls diesel particulate a carcinogen The only government in the world to make this determinationin 1998and it has led to six different regulations on diesel construction engines. The EPA calls diesel particulate a probable carcinogen…under the Bush administration….what will the Obama Administration have to say?

12. The California Regulatory Burden Stationary Enginespower generators, etc., or if your equipment is on a job site more than one year Portable Engines> 50 h. p. gen sets, concrete pumps Large Spark Ignitionfork lifts Cargo Handlingin ports for bulk cargo, cranes, etc. Off-Road Equipment25 horse power and up On-Road Equipmentanything above 14,000 lb GVW

13. They are all badbut….. The off-road rule is truly horrible, requiring replacement of 180,000 pieces of equipment in the next ten years.

14. Basics of the off-road rule Applies to all fleets in the state: Any machine greater than 25 horsepower Large >5,000 combined diesel horsepower Medium 2500 h. p. Small <2500 h. p.

15. Current key provisions of off-road rule Cant idle any diesel engine for longer than 5 minutes with specific exceptions. Must have a written idling policy Cant buy a machine with a Tier 0 (pre 1996) engine effective March 1 (no Tier 1 after 2013) Cant sell any machine without a disclaimer that says equipment is under regulation from CARB Must meet ever-declining fleet emission standards each year Must report progress on meeting requirements each year

16. NO 2 Requirements For Large and Medium Fleets Must replace, repower or retire 8 percent of fleet horsepower every year until 2015….then percentage jumps to 10 percent. Repower or replacement equipment must meet tier 3 standards now and tier 4 by 2020. Small fleets exempt from NO 2 requirements THEN

17. Particulate Matter Requirements Must add CARB verified diesel emission control systems (VDECS) to 20 percent of remaining fleet. Large fleets must start compliance this year Medium fleets by 2012 Small fleets by 2015 VDECS cost between $10,000 and $50,000 per application, plus installation costs.

18. Reporting Requirements Everybody had to make an initial report to CARB by September 2009* The latest data we have is that nearly 7,800 fleet owners have reported about 155,000 pieces of equipment into the CARB system. That means that the CARB emissions inventory was off in its estimate of the fleet size by about 15%...and we have discovered that their fuel use estimate was off by 70%!! Bottom line, CARB is over-regulating our industry. SCCA is working with AGC and CIAQC (more about that later) to scale back the rule to fit the need. *Annual reports required April 1 each year thereafter

19. Engine Identification Numbers The EIN must be white on a red background, located in clear sight on the right (starboard) side of the outside of the vehicle, approximately 5 feet above ground. Each character of the EIN needs to be at least 3 inches tall and 1.5 inches wide. The EIN must be maintained in a manner that retains its legibility for the entire life of the vehicle.

20. Enforcement CARB enforcement department just added 20 new inspectors Local Air District inspectors (and there are 35 air districts around the state) can also enforce rule Until CARB receives waiver from EPA can only enforce idling, sales and reporting requirements. The EIN requirements are to there to let enforcement agents do a drive-by inspectionno numbers, quick ticket.

21. Penalties Failure to follow the regulation can result in civil penalties of $10,000 per day per machine. Criminal penalties can reach $40,000 per day per machine and jail time. These are realone California highway contractor recently settled a CARB fine for $6 million, plus meeting ISO 9000 standards for his business THE ATTORNEY GENERAL STARTED AT $34,000,000 IN FINES ON THIS CASE!

22. What we are doing about it Consultants wet dreamwe are reviewing consultant qualifications for our members Still fightingOff-road rule was amended in December and January ….pushing for more amendments Pushed through legislative changes in reporting and compliance requirements during latest budget battle

23. What you should be doing Get familiar with California rule Understand that it was passed as two regsone for NO2 and one for particulate matter Can only be adopted in total, not subject to amendment other than technical corrections such as geographical designations Fight through the regulatory process and in the legislature to keep state from adopting anything Figure out whether you want to stay in business after this passes

24. Support organizations Everybody is on the same bus with these regulations….in fact, the buses will get regulated under the on-road rule. Join forces with all other associations, speak with one voice and try to get some professionals in on the game. In California, we created the Construction Industry Air Quality CoalitionCIAQCin 1989 and have been working on these issues ever since…check out www.ciaqc.com for more information

25. For More Information William E. Davis, Executive Vice President Southern California Contractors Association 6055 E. Washington Blvd., Suite 200 Los Angeles, CA 90040 323-726-3511 FAX 323-726-2366 Cell 323-336-1242 williamedavis@cox.net