Comment Log Display

 


December 13, 2010

Clerk of the Board
Air Resources Board
1001 I Street
Sacramento, CA  95814

	Re:	Truck & Bus (On-road) Diesel Rule Amendments 

Dear Air Resources Board:

Our company is a member of the California Construction & Industrial
Materials Association, has reviewed the Oct. 30, 2010 proposed
amendments to the On-road diesel rule, and provides these comments.
 

Company Information

We are producers of aggregates, industrial minerals, and ready
mixed concrete.  We supply the materials to build California’s
roads, bridges, hospitals, schools, and water systems. 
 
Our fleets are primarily local use vocational trucks.  These
include concrete mixer fleets that deliver within a 15 mile radius,
drive less than 14,000 miles in a year, and operate about 1,400
hours per year (national averages).  They also include water,
fuel/lube, and mechanics trucks that operate primarily at a plant
or construction site.  

These trucks are used for local supply of materials and support
local business and construction.  They typically have longer
service lives than over-the-road long haul trucks, can be difficult
to retrofit, and don’t have the engine revolutions to make
retrofits effective.

Construction Materials & the Economy

The construction materials industry has been hit hard by the
economic downturn.  California aggregate and ready mixed concrete
production is off 50% and 60% respectively from 2005 to 2009.  For
2010, production continues to be flat or slightly below 2009
levels.  Most forecasts, including one by the Legislative Analyst
Office’s, do not foresee any significant up-turn in the
construction sector prior to 2015.  In fact, the LAO states, “The
construction industry remains flat on its back—with few immediate
prospects—due to the massive fall in residential and commercial
real estate markets.”  (LAO, California’s Fiscal Outlook, Nov.
2010).
 

ARB’s Proposed Changes

We appreciate the effort ARB has put into reviewing emissions
estimates resulting from the downturn in the economy; and,
consequently, the proposed rule changes based on these realities. 
We encourage ARB to continue assessing emissions and the impact of
the economy.

Generally, the proposed changes help by simplifying the rule,
delaying initial compliance, spreading out compliance dates, and
providing options to phase-in and account for reduced fleet size or
use.

In particular, there are a number of beneficial provisions:

•	Vehicles don’t have to be replaced before the end of their 20
year service life. 

•	A less aggressive compliance path for vehicles under 26,000 lbs. 
This will assist with a number of low-use local vehicles,
particularly those that operate primarily off-road and outside
population areas.

•	For vehicles over 26,000 lbs., the optional phase-in/reduced use
compliance path provides credit for vehicles no longer in the fleet
or not currently operating.  This is likely to be the most commonly
utilized compliance path.

•	Changing the baseline from 2008 to 2006 provides a starting point
more reflective of common fleet size.

•	The addition of a provision for low-use vehicles that considers
the operating requirements of fleets that deliver a product. 
Though helpful in concept, the 1,000 mile threshold is very
limiting and prevents this provision from providing substantive
relief.

•	Extends the useful life of credits for early-retrofit of vehicles
(or use of hybrid or alternative fuel vehicles) from 2014 to 2017. 
Also, allows this credit to be used in combination with the
phase-in/reduced use option.

Challenges & Solutions

Although the proposed changes help, there still are three ways the
rule will present challenges and hardship, particularly given the
reduced capital available and dim forecasts for future growth in
the construction sector.

1.  Bunching of PM Requirements Prior to 2014.  The biggest
difficulty for most fleets is the bunching of PM filter
requirements between 2012 and 2014.  Essentially, this is one area
where the rule has not changed.  It still presents a huge cost
burden within a relatively short time, particularly given that it
impacts all vehicles in a fleet. 

Proposed Solutions  

•	Additional delay or expanded low-use mileage exemption for
vocational trucks in the construction and construction supply
industries.  These include concrete mixer trucks that deliver a
product, and water, fuel/lube, and mechanics trucks that serve
plant and construction sites.  These are vehicles that travel
15,000-20,000 miles or less in a year.  The cost of compliance is
far greater relative to the PM impact of these low-mileage trucks.

•	Increase the threshold for the lower weight class to 33,000 lbs.

•	Provide an early retirement credit in the regular BACT compliance
path.

•	Spread out the initial PM filter compliance dates to 2017. 

2.  Lack of Credit Transfer Between Off and On Road Rules.  Many
companies with Off and On-road fleets had taken early action to
comply with the Off-road rule and received credit for doing so. 
However, due to the changes proposed in the Off-road rule, they
will be unable to utilize those credits.  At the same time, the
lack of current revenue greatly reduces their financial ability to
address the On-road rule.  In recognition of their efforts to
assist with diesel emissions reduction and by placing filters on
and modernizing their Off-road fleets, they should be granted
opportunity to transfer credits among the two rules.

Proposed Solution.  Develop a retrofit credit transfer program
based on a ratio of Off-road to On-road credits.  We are encouraged
that ARB’s notice for the rule indicates this is under
consideration.

3.  Lack of Early Replacement Credit.  Some companies purchased new
model on-road vehicles and engines based upon—or in advance of--the
requirements of the current law. This means they purchased either
2007 or 2010 model year engines.  These purchases have come at a
time of great financial stress for the companies, but were done to
spread out compliance costs over the long-term.  These purchases
have often required lead times of 8 to 9 months, due to the lack of
a developed market.  Finally, these purchases are very important in
developing a market for these newer engines as well as a market for
used equipment in years to come.  However, this proposal gives no
credit for early replacement of vehicles, even though there is
provision for early retrofits.  

Proposed Solution.  We are encouraged that the ARB notice indicates
a provision will be added in this regard.

Conclusion

Again, we appreciate the consideration ARB has given to more
accurately assessing emissions and studying the impact of the
economy on business sectors.  We appreciate your consideration of
our proposals.

Sincerely,



George Smith
Environmental Coordinator
Holliday Rock Co., Inc.