LEGISLATIVE & REGULATORY ISSUES
Construction Industry Faces Big Costs in Air and Water Quality Regulatory Arena
By Michael Lewis, Senior Vice President Construction Industry Air Quality Coalition
T
he election of Gov. Newsom has
emboldened the regulators in California and those in the legis- lature who would raise taxes and fees to fund their favorite initiatives. Te Construction Industry Air
Quality Coalition (CIAQC) and the Construction Industry Coalition on Water Quality (CICWQ) are facing a barrage of new efforts that will negatively impact the construction companies and construction activities generally. Te South Coast Air Quality
Management District (SCAQMD) has proposed a novel taxing scheme where the Legislature would authorize them to seek a voter-approved increase in the sales tax to fund “incentives” to reduce emissions from local sources. A one-half cent increase would generate $1.5 billion annually in the district which covers Los Angeles, Orange, San Bernardino and Riverside Counties. Tis legislation stalled when the
cities objected to this intrusion on the last remaining sales tax increment available for local government. SCAQMD withdrew their support when it became clear the bulk of the funds would be directed to transit projects and not direct emission reduc- tions programs. However, this bill will be back next year.
New Regulatory Approach in Air Quality Arena
When Gov. Jerry Brown signed
AB617 in 2017, it brought a whole new regulatory approach to the air quality
12 July/August 2019
business. Air districts throughout the state are required to begin identifying environmental justice neighbor- hoods where special monitoring and community emission reduction programs can be implemented. Te first step in these neighbor-
hoods will be intense monitoring, followed by special enforcement and concluding with community specific regulations. Te “redlining” of these neighborhoods could result in the relocation of local businesses and could impact construction yards and mainte- nance facilities. As the program rolls out, more and
more neighborhoods will be identified for special consideration and regulations that may not apply anywhere else in the air district. SCAQMD estimates their annual cost for this effort will exceed $20 million – and they are already planning fee increases to cover the cost.
Off-Road Regulation: Big Costs Projected
CIAQC has recently concluded an
internal analysis of the diesel off-road on-line reporting system data collected by the California Air Resources Board (CARB) and determined that the cost to the construction industry to replace their existing equipment in order to comply with the off-road regulation by 2023 will be in the billions of dollars. CARB estimated the total cost at less than $600 million when they amended the rule in 2010. Te CIAQC analysis would make
the rule the costliest regulation ever adopted by CARB and well beyond the construction industry’s ability to pay. It would substantially reduce the capacity of the industry and eliminate thousands of well-paying middle- class construction jobs. CIAQC has requested that CARB do an independent analysis to confirm the
costs, and CARB has agreed to begin their own analysis.
Update to Stormwater Permit On the water quality front, the
state has proposed to update the Construction General Permit for Stormwater Discharges that governs activity during the construction phase of a project. Te permit was last revised in 2012. A draft regulation in due in August of 2019. CICWQ has already undertaken
an effort to prepare technical and engineering data to support amend- ments that will be workable for the industry. Te CICWQ goals are to keep numeric limits out of the permit, allow compliance with BMPs (best management practices) rather than costly sediment treatment systems, and streamline the inspection and adminis- trative review process. CICWQ has also secured expert
technical assistance to aid in our advocacy efforts. In addition, CICWQ’s builder and contractor members are assisting with practical solutions for the Water Board’s consideration.
California Water Fix Project CICWQ continues to vigor-
ously support the California Water Fix project to assure a reliable supply of water from the California Delta. Despite Gov. Newsom’s announced support for a one-tunnel solution, this project is an important component of our efforts to provide sufficient water to support the growing population and economy of Southern California. Both CICWQ and CIAQC are
industry sponsored and funded organi- zations that help advise and educate contractors on regulatory compliance. For more information, contact Mike Lewis or Mark Grey at mike@
lewisandco.net or
mgrey@biasc.org.
California Constructor
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