California Air Resources Board Chairman Agrees to Delay Portions of the Off-Road Diesel Rule Until 2014!

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Les Chayo, CRA's General Counsel, informed CRA that Mary Nichols, Chairman of the California Air Resources Board ("CARB") has agreed to delay certain aspects of the "Off-Road Diesel Emissions Rule" until 2014. The delay is expected to "save" the construction industry as much as $9 billion dollars. The agreement to delay "enforcement" resulted from disclosure of a study by the Associated General Contractors of America ("AGC") that identified a more than 300% overestimation of emissions from off-road diesel equipment by CARB. Following discussions with the AGC, CARB Chairman Mary Nichols agreed to "Stretching out the timelines in reporting requirements will make the path to compliance a lot easier while the construction industry recovers from severe financial hardships." Ms. Nichols opined that the "Added time will allow the marketplace to "create a turnover" of old equipment."

Please note the changes (ie: delay in enforcement) are contingent upon CARB board approval at its hearings on December 16-17, 2012! The proposed changes would include:

1. Delay start of requirements for off-road diesel emissions rule until January 1, 2014;
2. Increase the number of "low-use" equipment exempted;
3. Provide "simpler" compliance options for small fleets;
4. Extend benefits for businesses that comply before their deadline; and,
5. Lower annual requirements to clean up engines.

Notwithstanding the foregoing, other portions of the regulation (first adopted in July, 2007) that went into effect this year will remain in effect, including new reporting, and idling and equipment labeling requirements for all fleets.

The agreement to delay enforcement will result in dramatically reducing the amount of construction equipment that must be replaced each year, in addition, "to early action" credits and exemptions for "low-use" vehicles.