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Industry Issues — Leading The Industry
in Smart Diesel Retrofit Advocacy
AGC is working closely with the EPA
to target retrofit incentives
The high cost of equipment, its 25-30
year useful life and the difficulty in obtaining pollution-reducing
devices makes it burdensome to purchase new equipment or retrofit
existing equipment. And, under current law, it is legal to
continue to operate this equipment as is until the end of
its useful life.
However, many environmental groups and
local and state entities support the use of contract specifications
that ban contractors from bidding on public works projects
because their equipment does not meet emissions standards
for new equipment but still remains legal to operate. This
practice has a negative economic impact on construction contractors,
particularly small businesses, and undermines the competitive
bidding process by giving a preference to companies operating
new fleets.
AGC strives to protect its members and
advance clean diesel initiatives to improve air quality through
a number of partnerships and initiatives. These efforts include
identifying diesel retrofit incentives that appeal to the
construction industry, securing federal funding for diesel
retrofits and crafting and promoting a federal tax incentive
for retrofitting equipment.
An AGC and EPA joint effort has resulted
in an EPA report, "Emissions Incentives for Off-road
Diesel Equipment Used in the Port and Construction Sectors"
(May 2005), which examines retrofit incentives from the contractor's
perspective and relies on significant industry input. The
incentives report has contributed to the work performed by
the Clean Diesel Retrofit Work Group, a federal advisory group
organized by and reporting to EPA and co-chaired by AGC.
AGC led a successful effort to include
a provision in the Safe, Accountable, Flexible, Efficient
Transportation Act: A Legacy for Users to make Congestion
Mitigation and Air Quality program monies available for the
retrofit of off-road diesel equipment used to build the projects
funded by the bill. The provision will also provide assistance
to contractors faced with new demands to reduce diesel emissions
as stricter air quality standards go into effect.
AGC worked closely with the co-sponsors
of the Diesel Emissions Reduction Act to ensure that DERA
was included in the comprehensive energy bill passed by Congress.
As the bill was originally written, it did not ensure that
qualified private fleets could apply for the public funds
set aside for retrofitting equipment.
The industry faces many challenges in this area, but AGC continues
to lead industry efforts to educate members and policy makers
about the costs and enormous benefits of diesel retrofitting.
Environmental Network
AGC's new Environmental Network was created for all AGC members
and chapter professionals with an interest in the environmental
issues impacting the construction industry.
By joining the network, AGC members can participate in the
association's policy making on environmental issues, gain
access to the latest environmental developments and have the
opportunity to interact with peers through the following free
benefits:
> AGC's Environmental Observer, an electronic newsletter.
> Access to AGC's Environmental e-Forum.
> Resources in the environment member-only section of
the Web site.
> Exclusive invitations to programs, meetings or events
developed for the network.
> Invitations to serve on special environmental business
task forces.
For more information or to join the Environmental Network,
visit www.constructionenvironment.org.
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