Sunday, November 25, 2007

ARA Article Understanding CARB 11-07

Understanding CARB

ARA and ARA of California partnership allows members to gain insight
BY Connie Lannan
Connie Lannan is marketing manager for the operations division of the American Rental Association, Moline, Ill. She can be reached at (800) 334-2177, ext. 228, or e-mail connie.lannan@ararental.org.
When the American Rental Association (ARA) became aware of the potential impact the new California pollution-control regulatory measures would have on rental operators in the state, the national association strengthened its partnership the ARA of California to accomplish two goals:
Work proactively with the California Air Resources Board (CARB). The agency is responsible for developing the off-road diesel emissions-control rules, so the ARA and the ARA of California wanted the agency to have a good understanding of the rental industry.
Educate ARA members. The ARA and ARA of California wanted members to know what these regulations entail and how they will impact their businesses.
"We knew right away that we needed to be involved," says John McClelland, ARA’s vice president for government affairs. The major air-quality regulations affecting rental businesses are the Portable Equipment Registration Program (PERP), which applies to portable equipment with engines greater than 50 hp and has been in effect for several years, but was being amended, and off-road diesel regulations, which apply to all self-propelled equipment with a diesel engine greater than 25 hp.
"We wanted to make sure that the CARB staff understood the rental industry and how we do our work," McClelland adds. "This is especially important because other states that must meet clean-air standards can use regulations developed by California in their air pollution control program." So, ARA’s task in California was not only to represent members in that state, but also to represent the entire rental industry in the rulemaking procedures, he notes.
"We could do the most for our members through a cooperative effort," says Steve Anthony, president of American Event Rentals in Stockton, Calif., who serves as ARA of California president. "To benefit our members, we decided to cooperate, educate and facilitate the education for our members and show the state agencies that we are interested in being a player here."
One of the first joint steps was to have CARB staff members tour a rental operation to give them a firsthand understanding of what members are doing. This was an enlightening experience for them, McClelland says.
The second step was to provide CARB with the most up-to-date data on how rental businesses in California operate. "We needed to know how they [rental operators in California] managed their fleet, how new the fleet was and how long they kept it that way. In essence, we needed demographics of the fleet and replacement rates," McClelland says.
ARA of California members were surveyed. McClelland and Michael Graboski, professor emeritus at the Golden, Colo.-based Colorado School of Mines and a consulting engineer to ARA, compiled that data and presented it to CARB.
"We found that the average rental fleet in California is about 38 months old," McClelland says. "CARB staff was amazed by that number because the typical contractor’s fleet is much older. We wanted to make sure that the staff writing these rules knew that the rental industry was already doing what they wanted everyone else to start doing — investing in new equipment and maintaining a clean operating fleet."
Throughout this process, the ARA and ARA of California proposed that the off-road diesel regulation be more flexible, allowing fleet owners to average their emissions to meet the targets set by CARB. The two associations also proposed changes to the 90-day registration restrictions, which are part of the PERP regulation that forbids rental operators to put portable equipment into service without an issued registration.
ARA and ARA of California also knew it was imperative to educate members about these regulations and the steps they need to take to be in compliance. A series of four workshops was scheduled, with the first being conducted in both Northern and Southern California during March.
"John and Mike really did a great job of keeping the membership apprised of what was coming," says Don Cruikshank, vice president of A-V Equipment Rentals in Newhall, Calif., and a member of the ARA of California board. "Member involvement was terrific. The workshops opened a lot of eyes."
Anthony agrees. "A lot of business owners were aware of the fact that there is an issue, but they found these workshops eye-opening. It is better to know with eyes wide open because, in this incidence, ignorance is not an excuse. There will be no passes to those who say, ‘We didn’t know.’ "
Doug Fleury, risk/marketing manager for Rebel Rents in Temecula, Calif., attended the workshop in San Diego. "Everyone in the room paid attention," he says. Because many of these regulations are written in legal language, "you need someone who can break it down in layman’s terms and tell how these will impact rental operators. These workshops did that," he says.
For Cruikshank, the workshops crystallized what he had been hearing in terms of the regulations. "We had heard a lot of rumblings [regarding these regulations], but it is now becoming reality. For the past 30 years, we’ve been operating without much change. Now, this is a whole new ballgame," he says.
More than 160 ARA members attended the workshops. Each received a 300-page binder, jam-packed with information on the regulations and compliance specifications. That was valuable access to extremely important information, McClelland says.
Anthony couldn’t agree more. "A lot who attended were impressed that we were taking a leadership role. This is a long process, but we are doing something about it. Members walked away with a 1-in. binder that was full of information," he says.
All interviewed agree that ARA’s involvement in the process with CARB has made a difference. The new provisions include ARA’s proposal that would allow fleets to average their emissions in regard to the off-road diesel equipment regulation. That means rental fleets might not need to retrofit or retire equipment in order to be in compliance.
ARA also is committed to resolve the 90-day registration rule that is part of the PERP regulation by developing a temporary registration for portable equipment.
In addition, ARA was able to convince CARB members that rental equipment can be voluntarily registered in the state as opposed to registering it with each Air Quality Management District as it moves within the state.
Those are significant changes that wouldn’t have occurred without this partnership. From having access and being able to provide insight on these complex issues to serving as a resource, this partnership helped ARA members be more informed and better prepared for the changes ahead, Anthony says.
Now, ARA is asking members for input on the new proposed changes for on-road diesel trucks.
Members "know that the ARA and ARA of California will educate, go to bat, attend hearings and be the eyes and ears of the rental industry," he says. "We are the only associations in rental that are doing this. This is where your dues are going. We are going to battle and working on this for the benefit of our members," Anthony says.