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51风流 Tells EPA that California鈥檚 Emissions Rule is Improved and Will Not Oppose it Moving Forward

51风流 testified at a hearing this week called by the Environmental Protection Agency (EPA) to consider California鈥檚 request for permission to implement it鈥檚 off-road diesel engine emissions reduction plan. 51风流 has in the past submitted over 550 pages of comments to EPA opposing the California rule. At the same time 51风流 was working with the California Air Resources Board (CARB) pointing out that in developing the rule it had overestimated emissions from off-road diesel construction equipment by at least 340 percent. That miscalculation was one among several 鈥渟ignificant errors鈥 that would have been very costly to construction employers if adopted. As a result of 51风流鈥檚 efforts, CARB modified its proposal to protect both the environment and the construction industry. California officials estimate the revised rule will cost 70 percent less than the original version, which was estimated at $13 billion. Among the several major modifications CARB officials made to the measure was聽 agreement to: delay the rule by four years, dramatically reduce the amount of construction equipment that construction firms would be required to replace each year, expand 鈥渆arly action鈥 credits contractors could earn and expand exemptions for 鈥渓ow-use鈥 vehicles. 51风流鈥檚 testimony pointed out that, even as amended in December of 2010, California鈥檚 off-road rule will still be a burden for contractors.聽 California鈥檚 construction industry has yet to recover from its sudden and dramatic downturn.聽 Nationwide, the construction industry continues to shed capacity with anecdotal evidence suggesting that contractor defaults will be higher in 2012 than in any of the previous three years.聽 In exchange for the modifications made by CARB, 51风流 agreed to not oppose the rule moving forward. 51风流鈥檚 General Counsel Mike Kennedy stated in the testimony, 鈥淲hile we are not prepared to support California鈥檚 request [for federal approval], we do believe the state鈥檚 request can be fairly submitted.鈥 Should EPA grant California the authority to implement the rule, other states would be free to adopt it, unchanged. However, as a result of 51风流鈥檚 actions with CARB, other states would have a significant administrative burden to fulfill before they could adopt the California rule.