FACTS 2006 / 2007

This is a summary of facts presented by various sources cited on this website.

California Construction

• CSLB indicates there are approximately 295,000 contractor licenses in California

• CARB (California Air Resources Board) in 2005 identified 79,000 contractors likely impacted by its proposed Off Road Diesel regulations

  • CARB received 551 equipment survey responses from the 79,000 contractors

• CIAQC (Construction Industry Air Quality Coalition) estimates there are 180,000 pieces of Off Road Diesel construction equipment in California

• A Justice Associates study estimates proposed CARB regulations will cost California contractors $13.9 Billion by 2010 – roughly $77,222 per Off Road machine

• New large earth-moving equipment can cost in the range of $1.6 million each.

• A single CAT 657E scraper engine retrofit (from 1996 Tier 0 to 2001 Tier 1, for example) recently cost approximately $250,000 through Caterpillar. 

• Profit margins for earthmoving, road building and underground construction typically range from 2% to 5% per contract.

  • For example: a moderately large $2 million tract home earthmoving contract might have 2-3 bulldozers, 8 scrapers, 1 wheel dozer, a motor grader and 3-4 water trucks moving 20,000 CY of dirt per day for a cost of $1.25 per CY and might yield a profit of $40,000 to $100,000 (or a loss of about the same).

  • CONJECTURE BASED ON FACT: If smaller equipment were needed to meet proposed CARB regulations – one bulldozer, 4 articulated trucks, 1 wheel dozer, a motor grader and 2 water trucks moving 4,500 CY per day – to meet stricter engine requirements, this cost per CY could nearly triple to $3.25 CY.  (Source: EGCA estimate)

Off Road Diesel engines

• Construction accounts for approximately 11% of Off Road fuel sales annually (Source: US Energy Information Administration)

• As much as two-thirds of Particulate Matter emissions come from off-road engines including agriculture, trains, marine engines and “construction and mining equipment” (Source: CARB)

  • 15.77% of all Particulate Matter mobile emissions comes from diesel engines used in construction and mining (Source: CARB)

• Construction off-road vehicles produce an estimated 11.7% of mobile-source nitrogen oxides but only 1% of mobile-source carbon monoxide emissions (Source: CARB)

• CARB documents identify “Tier 0” engines as those manufactured before 1996, “Tier 1” engines as, depending on horsepower rating, those manufactured between 1996 and 2001-2002; Tier 4 (the goal) technology has not yet been introduced in most models

• “Repowering” an older CAT 657E scraper dual-engine to move from Tier Zero to Tier One can cost $250,000 for the two engines, however, those engines may become obsolete in 2008 under proposed CARB regulations and cannot be sold in California unless repowered to a higher Tier at an additional cost of $250 to $300 per horsepower (Source: SAN CIAQC)

Environmental Regulation

• On 5/11/04 the Bush Administration implemented Clean Air Nonroad Diesel Rules to cut emission levels from construction, agricultural and industrial diesel-powered equipment by more than 90 percent, also removing 99% of the sulfur in diesel fuel by 2010.

  • EPA estimates the added cost for low-sulfur fuel at about seven cents per gallon, but the net cost is projected to average about four cents per gallon because it says the use of ultra-low sulfur fuel could significantly reduce engine maintenance expenses.

• Gov. Schwartzenneger’s 2005 Executive Order S-305 required that by 2010, California reduce GHG emissions to 2000 levels; by 2020, reduce GHG emissions to 1990 levels.

  • Note: what are the “2000 levels” for construction?

• Beginning 3/15/06 CARB required registration of all Portable Engines

  • Registered portable engines shall not exceed particulate matter emissions concentration of 0.1 grain per standard dry cubic feet corrected to 12 percent CO2

  • Registered portable engines shall not exceed 550 pounds per day per engine of carbon monoxide (CO) and 150 pounds per day per engine of particulate matter less than 10 microns (PM10);

• Beginning 6/1/06 EPA requires refiners and fuel importers to cut the sulfur content of highway diesel fuel 97 percent, from 500 parts per million to 15.

• By 12/31/06 the following new regulations are proposed:

  • Statewide: new CARB rules on Off Road Diesel engines and fleet emission levels

  • San Diego County: proposed Fugitive Dust Control Rule to reduce directly emitted PM10 from 17 different sources of “fugitive dust” from dirt roads and grading and sandblasting all the way down to home fireplace emissions

• Since 1980, there has been an 84% reduction in ozone in San Diego County (Source: San Diego APCD)

Diesel emissions defined

• NOx = Nitrogen oxides, or NOx, is the generic term for a group of highly reactive gases, all of which contain nitrogen and oxygen in varying amounts. Many of the nitrogen oxides are colorless and odorless. However, one common pollutant, nitrogen dioxide (NO2) along with particles in the air can often be seen as a reddish-brown layer over many urban areas.  Nitrogen oxides form when fuel is burned at high temperatures, as in a combustion process. The primary manmade sources of NOx are motor vehicles, electric utilities, and other industrial, commercial, and residential sources that burn fuels. NOx can also be formed naturally.  (Source: US EPA)

• PM = "Particulate matter," also known as particle pollution or PM, is a complex mixture of extremely small particles and liquid droplets. Particle pollution is made up of a number of components, including acids (such as nitrates and sulfates), organic chemicals, metals, and soil or dust particles.

  • The size of particles is directly linked to their potential for causing health problems. EPA is concerned about particles that are 10 micrometers in diameter or smaller because those are the particles that generally pass through the throat and nose and enter the lungs. Once inhaled, these particles can affect the heart and lungs and cause serious health effects. EPA groups particle pollution into two categories:

    • "Coarse particles," such as those found near roadways and dusty industries, range in size from 2.5 to 10 micrometers in diameter. ?

    • "Fine particles," such as those found in smoke and haze, have diameters smaller than 2.5 micrometers. These particles can be directly emitted from sources such as forest fires, or they can form when gases emitted from power plants, industries and automobiles react in the air.  (Source: US EPA)

Small Fleet – Need to Know 

Need to Know Definition of Small Fleet: Under 2,500 horsepower (hp) total in your entire off-road diesel fleet AND you meet the government’s definition of a Small Fleet (sorry, Home Depot, but you don’t meet this criteria).

Fleet Average Requirements: Each fleet must meet the fleet average requirements below by August 1 of each year starting 2015 – FOR PM only, not NOx.

Date for Compliance: Small fleets must meet a PM fleet average beginning in 2015. Small fleets are not required to meet a NOx fleet average. To meet the PM fleet average, for each compliance date, a small fleet must demonstrate that its overall fleet average Diesel PM Index was less than or equal to the calculated Diesel PM Target Rate.

What you must do: Each fleet must meet the fleet average requirements below by August 1 of each year or demonstrate that it applied the best available control technology (BACT) as described in section 2449(d)(2). These are declining targets (they get tougher every year or two).

Adding new equipment: A small fleet that met the BACT requirements in section 2449(d)(2) instead of the fleet average requirements in section 2449(d)(1) on the most recent compliance date may not add a vehicle to its fleet unless both the following conditions are met:

a. The vehicle engine is Tier 2 or higher, and
b. The vehicle engine’s PM Emission Factor (after being adjusted for any VDECS) is less than or equal to the fleet’s Diesel PM Index for the most recent compliance date.

Idling engines:

(A) Idling Limit - No vehicle or engines subject to this regulation may idle for more than 5 consecutive minutes. Idling of a vehicle that is owned by a rental company is the responsibility of the renter or lessee, and the rental agreement should so indicate. The idling limit does not apply to:

1. idling when fueling,
2. idling to verify that the vehicle is in safe operating condition,
3. idling for testing, servicing, repairing or diagnostic purposes,
4. idling necessary to accomplish work for which the vehicle was designed (such as operating a crane),
5. idling required to bring the machine system to operating temperature, and
6. idling necessary to ensure safe operation of the vehicle. Confused? Email Dan Fauchier – This e-mail address is being protected from spam bots, you need JavaScript enabled to view it for help

Medium Fleet – Need to Know 

Definition of Medium Fleet: Between 2,500 and 5,000 horsepower (hp) total in your entire off-road diesel fleet. A fleet must meet medium fleet requirements if the total vehicles under common ownership would be defined as a medium fleet.

Fleet Average Requirements: Each fleet must meet the fleet average requirements below by June 1 of each year or demonstrate that it applied the best available control technology (BACT) as described in section 2449(d)(2). Date for Compliance: Medium fleets must meet a NOx and PM fleet average beginning in 2013. To meet the NOx and PM fleet average, for each compliance date, a medium fleet must demonstrate that its overall fleet average Diesel PM Index was less than or equal to the calculated Diesel PM Target Rate. These are declining targets (they get tougher every year or two).

What you must do: Each fleet must meet the fleet average requirements below by March 1 of each year or demonstrate that it applied the best available control technology (BACT) as described in section 2449(d)(2). If your fleet does not meet the NOx Fleet Average (and it won't), you must demonstrate to CARB on each annual compliance date that you "turned over (sold, retired, repowered, replaced with new)8 percent of your total maximum horsepower each year until compliance (for the initial years, later this increases to 10% per year). AND If your fleet does not meet the Diesel PM Fleet Average, you must demonstrate to CARB that you retrofit 20 percent of your total maximum horsepower with highest level VDECS each year until compliance. Year after year.

Adding new equipment: After the first fleet average compliance date and before the final compliance date shown for a fleet, if a fleet met the fleet average requirements in 2449(d)(1) on the previous compliance date, when it adds a vehicle to its fleet, the fleet must demonstrate that the fleet still meets the fleet average requirements within three months of adding the vehicle. That is, fleets may not add vehicles that cause them to exceed the most recent fleet average target rate. The added vehicle also must be included in the fleet average demonstration on the next compliance date. This requirement applies between March 1, 2013 and March 1, 2023 for medium fleets. Requirements related to adding vehicles for fleets that do not meet the fleet average requirements are in section 2449(d)(2)(C). Requirements related to adding vehicles after the final compliance dates are in section 2449(d)(1)(D)1.

Idling engines:

• (A) Idling Limit - No vehicle or engines subject to this regulation may idle for more than 5 consecutive minutes. Idling of a vehicle that is owned by a rental company is the responsibility of the renter or lessee, and the rental agreement should so indicate. The idling limit does not apply to:
  1. idling when queuing,
  2. idling to verify that the vehicle is in safe operating condition,
  3. idling for testing, servicing, repairing or diagnostic purposes,
  4. idling necessary to accomplish work for which the vehicle was designed (such as operating a crane),
  5. idling required to bring the machine system to operating temperature, and 6. idling necessary to ensure safe operation of the vehicle.
• (B) Written Idling Policy - As of March 1, 2009, medium and large fleets must also have a written idling policy that is made available to operators of the vehicles and informs them that idling is limited to 5 consecutive minutes or less. Confused? Email Dan Fauchier – This e-mail address is being protected from spam bots, you need JavaScript enabled to view it for help

Large Fleet – Need to Know 

Definition of Large Fleet: 5,000 horsepower (hp) or more total in your entire off-road diesel fleet. A fleet must meet large fleet requirements if the total vehicles under common ownership would be defined as a large fleet.

Fleet Average Requirements: Each fleet must meet the fleet average requirements below by March 1 of each year or demonstrate that it applied the best available control technology (BACT) as described in section 2449(d)(2).

Date for Compliance: Large fleets must meet a NOx and PM fleet average beginning in 2010. To meet the PM fleet average, for each compliance date, a small fleet must demonstrate that its overall fleet average Diesel PM Index was less than or equal to the calculated Diesel PM Target Rate.

What you must do: Each fleet must meet the fleet average requirements below by March 1 of each year or demonstrate that it applied the best available control technology (BACT) as described in section 2449(d)(2).

If your fleet does not meet the NOx Fleet Average (and it won't), you must demonstrate to CARB on each annual compliance date that you "turned over (sold, retired, repowered, replaced with new)8 percent of your total maximum horsepower each year until compliance (for the initial years, later this increases to 10% per year). AND If your fleet does not meet the Diesel PM Fleet Average, you must demonstrate to CARB that you retrofit 20 percent of your total maximum horsepower with highest level VDECS each year until compliance. Year after year.

Adding new equipment: After the first fleet average compliance date and before the final compliance date shown for a fleet, if a fleet met the fleet average requirements in 2449(d)(1) on the previous compliance date, when it adds a vehicle to its fleet, the fleet must demonstrate that the fleet still meets the fleet average requirements within three months of adding the vehicle. That is, fleets may not add vehicles that cause them to exceed the most recent fleet average target rate. The added vehicle also must be included in the fleet average demonstration on the next compliance date. This requirement applies between March 1, 2009 and March 1, 2020 for large fleets. Requirements related to adding vehicles for fleets that do not meet the fleet average requirements are in section 2449(d)(2)(C). Requirements related to adding vehicles after the final compliance dates are in section 2449(d)(1)(D)1.

Idling engines:

• (A) Idling Limit - No vehicle or engines subject to this regulation may idle for more than 5 consecutive minutes. Idling of a vehicle that is owned by a rental company is the responsibility of the renter or lessee, and the rental agreement should so indicate. The idling limit does not apply to:
  1. idling when queuing,
  2. idling to verify that the vehicle is in safe operating condition,
  3. idling for testing, servicing, repairing or diagnostic purposes,
  4. idling necessary to accomplish work for which the vehicle was designed (such as operating a crane),
  5. idling required to bring the machine system to operating temperature, and
  6. idling necessary to ensure safe operation of the vehicle.
• (B) Written Idling Policy - As of March 1, 2009, medium and large fleets must also have a written idling policy that is made available to operators of the vehicles and informs them that idling is limited to 5 consecutive minutes or less. Confused?

Email Dan Fauchier – This e-mail address is being protected from spam bots, you need JavaScript enabled to view it for help