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CA Diesel Rules Lead to Overseas Equipment Sales08-16-07 | News
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CA Diesel Rules Lead to Overseas Equipment Sales

Recently, California passed the toughest off-highway diesel regulations in the nation, with a plan to reduce diesel emissions 85 percent below 2000 levels by 2020. As a result, an estimated 180,000 pieces of equipment are to be affected. The industry is expected to pay hundreds of millions of dollars towards new and retrofitted loaders, bulldozers, mowers, utility vehicles and backhoes. (Snow blowers or other equipment that runs less than 100 hours per year will be exempt, along with emergency vehicles, agricultural equipment and equipment that runs less than 25 horsepower.)

Now, many California businesses are likely to sell their old equipment to countries with looser environmental regulations.

?EUR??,,????'??We are working with a number of different organizations to see if we can move this equipment to Asia, South America or elsewhere,?EUR??,,????'?? said Rich Soltero, project manager at Dahl?EUR??,,????'???s Equipment Rental Inc. in San Jose.

The countries purchasing the equipment will most likely not pay the fullest amount for the old equipment, knowing that the California businesses have little choice what to do with it.

Some environmentalists have voiced opposition to the sale of the equipment, arguing that businesses are simply passing on their emissions problems to other countries. However industry officials argue that the equipment might actually be better than what some countries are using now.

?EUR??,,????'??The equipment that will be moving to other parts of the world will still be meeting U.S. standards and may be cleaner than what they?EUR??,,????'???ve got now,?EUR??,,????'?? said Mary Nichols, chairwoman of the California Air Resources Board. ?EUR??,,????'??It?EUR??,,????'???s a little bit of a trickle-down effect, but it?EUR??,,????'???s better than not doing anything at all.?EUR??,,????'??

The market for used heavy construction equipment equals about $100 billion dollars.

California?EUR??,,????'???s emissions regulations are intended to heavily reduce respiratory illnesses and premature deaths as well as save the state over $26 billion in health care costs.

California Waiver

History shows that when California adopts a higher level of clean air standards, other states will often follow. According to a 1967 federal law, California has the authority to adopt its own air-quality standards, subject to EPA approval. Once the federal government approves a ?EUR??,,????'??California Waiver,?EUR??,,????'?? other states often choose to enforce the same rules. It?EUR??,,????'???s this process which has led to the catalytic converter, low-emissions vehicle standards and the ?EUR??,,????'??check engine?EUR??,,????'?? light.

Source: San Francisco Chronicle , Baltimore Sun

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