Comment Log Display

Dear Members of the California Air Resources Board:

The California Air Resources Board (CARB) adopted a flawed
off-road diesel regulation this summer that will have a profound,
negative impact on California's infrastructure rebuilding efforts,
the health of the state's construction industry and its overall
economy.

Construction contractors and workers want these regulations to
work for everyone, however this rule lacks clarity, does not take
into account the availability of capital in the industry or the
advancement of engine technology, will result in a downsizing of
construction firms and loss of construction jobs, contains unfair
retroactive requirements and does not accurately reflect the
economics of our business.  More specifically, this regulation is
flawed for the following reasons:

Clarity and Comprehensibility: The regulation is too complex and
lengthy: we do not fully understand it or its effect on our fleet.
 Before this regulation, we bought equipment based on what we
needed to do our work.  We will have to hire consultants to tell
us what we can and must buy and when we will need to replace,
retrofit, or repower what have.

Capital-Intensive Industry: The value of our business is tied up
in our fleet of construction equipment. To meet CARB's
requirements for newer equipment, we will have to sell existing
equipment.  This is like a retailer being forced to sell its
building and buy a new one.

If this law is passed I estimate the size of my company will be
reduced by 70%. This will create a loss of jobs and reduce my
bonding capacity in the process which in turn limits the jobs I am
able to bid on.  The snow ball effect could possibly put me out of
business.

Example of the way this has worked for me so far:  A few years
back I purchased (4) four 637 scrapers for $60,000 each a total of
$240,000 dollars.  I created 4 jobs in the process with earnings
between 50 to 70 thousand dollars each.  Due to the possibility of
this law going in effect I sold (2) two of these machines and
figured to up grade the other (2) two machines.

The first machine I received a grant for $150,000 to replace (2)
two engines that was in the machine.  The total cost ended up
being $350,000 to rebuild a machine I payed $60,000 for.  The
hourly rate for this machine stays the same as the second 637 that
I decided not to upgrade, it's just not cost effective.  I can not
sell this machine out of Ventura County which strategically
reduces its value.  If I sold this machine today I would be lucky
to get $100,000 for it.

So just to recap I went from 4 machines to 2 machines soon to be
down to one machine, 2 jobs lost at $50,000 each.  $200,000 out of
my pocket with no way to recover before the law changes again.

THIS LAW IS TOTAL MADNESS.

Erbie Daw Jr.