A September 9 report from the latest Beige Book, a summary of informal soundings of business conditions, "indicate that economic activity continued to stabilize in July and August."  The districts are referred to by the name of their headquarters city. Relative to the last report, Dallas indicated that economic activity had firmed, while Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement. Atlanta, Chicago, Kansas City, Minneapolis, and New York generally described economic activity as stable or showing signs of stabilization; St. Louis remarked that the pace of decline appeared to be moderating. Most Districts noted that the outlook for economic activity among their business contacts remained cautiously positive.The Beige Book was also a bit more upbeat about homebuilding but not about conditions in nonresidential construction and real estate. Residential construction remained at low levels overall, although Chicago and Dallas reported a small increase in activity. Reports on commercial real estate markets indicated that demand for space remained weak and that construction continued to decline in all Districts. Atlanta, Philadelphia, Richmond, and San Francisco reported that vacancy rates increased, while rates held steady in the Boston and Kansas City Districts and were mixed in New York. Boston, Dallas, Kansas City, Philadelphia, and Richmond commented that the demand for space remained weak. Commercial rents declined according to Boston, Chicago, New York, Philadelphia, and Richmond. Rent concessions were reported in the Richmond and San Francisco markets, and Richmond noted that some landlords had postponed property improvements in an effort to conserve cash. Construction remained at very low levels, with modest improvements noted in public construction in the Chicago, Cleveland, and Minneapolis Districts.The reports are consistent with what nonresidential contractors have been telling AGC: outside of stimulus money for highway construction and a few other niches, conditions have not brightened at all.To report what you are encountering, email simonsonk@agc.org. For more information on AGC Chief Economist Ken Simonson's weekly economic newsletter, visit http://www.agc.org/cs/news_media/newsletters.

AGC's new online recycling toolkit will help contractors recycle construction and demolition (C&D) debris and reuse industrial materials in new construction projects.  AGC worked with the U.S. Environmental Protection Agency (EPA) and the Industrial Resources Council (IRC) to make this tool available.The recycling toolkit provides information on starting a recycling program, links to web pages to find C&D materials reuse or recycling facilities, examples of construction waste management plans and how to find industrial materials for use in construction projects.  Interactive graphics demonstrate how recycled industrial materials could be used in the new construction of buildings and roads.  Toolkit users can learn from their peers through case studies, and members are welcome to submit case studies and suggest other resources.According to EPA estimates, wastes from new construction, renovation, and demolition projects generate about 25 percent of the total U.S. solid waste volume.  EPA estimates that 170 million tons of building-related C&D materials were generated in the U.S. in 2003.  Of that quantity, as much as 48 percent was diverted from landfills.  EPA has not published estimates of waste generation and recycling on highway projects; however, informal estimates have indicated that highway contractors recycle and reuse large amounts of asphalt and concrete associated with their projects.  On highway and road projects, these materials often are processed and reused on the very same job site.  In practice, only asphalt, steel, metals and concrete have been recycled or reused in significant volumes in the U.S., because there are established secondary markets for these used materials.  Green building rating systems and initiatives promote recycling and reuse by allotting points towards a higher score or level of certification that projects can achieve by recycling and incorporating recycled materials.The recycling of construction and demolition debris is one way that contractors can help reduce greenhouse gas (GHG) emissions. A significant amount of energy is expended (and associated GHGs are released) during the harvesting, manufacturing and transportation of materials used in construction. Emissions are expended during the process of recycling and reusing materials; however when these materials are reused or recycled, the GHG emissions that would have occurred during virgin material harvesting, processing and manufacturing are avoided. EPA estimates that for every ton of asphalt recycled from construction an associated 0.03 metric tons of carbon dioxide (CO2) emissions are avoided. Since approximately 139 million tons/year of asphalt are recycled in the U.S., the result is that 4.2 million tons of CO2 emissions are avoided.  About 140 million tons per year of concrete are recycled, which equals 1.4 million ton of CO2 emissions avoided, and 40 million tons of steel are recycled each year, which amounts to 71.6 million tons of CO2 emissions avoided. For more information, contact Melinda Tomaino at tomainom@agc.org or (703) 837-5415.

Submissions are now being accepted for AGC's Aon Build America Awards and The Marvin M. Black Excellence in Partnering Awards. Entries must be completed in the 2009 calendar year. Past award winners have not only been featured in a variety of AGC materials like the Annual Report, association newsletters and ads, but also in Engineering News Record, Constructor Magazine and numerous other national media outlets.Isn't it time to get your outstanding projects and hard work recognized? Deadline for entry is November 6, 2009.For more information on these award programs or for information on how to prepare your entry, please visit www.agc.org/awards or contact Elisa Brewer Pratt at (703) 837.5343 or brewere@agc.org.

As of June 26, 2009, all new construction and major renovation projects registering to use the Leadership in Energy and Environmental Design (LEED) Green Building Rating SystemTM need to use the newest version - LEED 2009.  The changes to the rating system are part of an over-arching evolution of the LEED system - LEED Version 3.  In this guest article, AGC Environmental Network Steering Committee Chair Thomas Taylor (Vertegy, an Alberici Enterprise) provides a quick look at some of the changes in the new version.It is fair to say that almost every contractor has felt the effects of the economic slowdown. The slowdown in spending has hit all sectors of our industry. However, one market that seems to be the least effected is "green" construction. Before the slowdown, the green movement had pushed issues and ideas into the mainstream; you could see green topics featured in almost every type of publication and periodical. Some of the concepts were captured by lawmakers who saw sustainability as a non-partisan way to leave their mark and improve the community. The new administration has embraced many of these core concepts and has initiated steps to improve energy efficiency, reduce greenhouse gas emissions and create new green jobs. This shift in focus and policy has encouraged those owners willing to finance a project to explore sustainability as a way to increase the value received for the dollars being invested in a capital project.The U.S. Green Building Council (USGBC), developer of the LEED Rating System, has made efforts to keep pace with the changes to the marketplace through the evolution of the LEED system.  LEED Version 3.0 was launched on April 27, 2009 and reflects significant changes to the rating system and certification process.The LEED certification process is now administered by the Green Building Certification Institute (GBCI). The GBCI is a subsidiary of USGBC and was created to administer and manage the LEED process as well as the professional status of accredited professionals.  GBCI has brought on an entire new list of contractors that will conduct the reviews of project submissions and offer the appropriate level of certification. This process is reported to be more streamlined and objective as these contractors will be using an ISO-based process as the foundation of their reviews.  LEED-Online, the web-based system for LEED project documentation, has also been overhauled to provide improved functionality and greater communication between the project teams and the certification bodies.Anyone who registers a project will be required to accept the terms and conditions of use. These documents outline the minimum program requirements (MPRs) needed by any project to be eligible for possible certification as well as the terms of use regarding the actual certification of a building.LEED credit points and prerequisites have been updated. The newly reorganized LEED 2009 Rating Systems, including LEED-NC, are now based on 100 voluntary credits. The number of prerequisites will vary depending on the rating system and there are also up to 10 additional points for non-core categories (Innovation in Design and Regional Priority).The process for becoming a LEED Accredited Professional has changed.  GBCI has established a multi-tiered accreditation program that requires ongoing education credits and biennial maintenance fees in order to remain in active status.  Professionals who became LEED APs before the switch will have the opportunity to "opt in" to the new program without retesting.  However, you will need to accept the disciplinary policy, pay the maintenance fee and agree to the ongoing credentialing maintenance program (CMP).Finally, the LEED Reference Guides were restructured to reflect the changes to the LEED system.  Under the former version of LEED, each rating system had its own reference guide.  The LEED 2009 Reference Guides follow more of a "bookshelf" format and cover one or more Rating Systems.  LEED for New Construction (NC), LEED for Schools and LEED for Core and Shell (CS) are bundled together in one manual, the LEED Reference Guide for Building Design and Construction (BD&C). LEED for Commercial Interiors (CI) is now covered in the LEED Reference Guide for Green Interior Design and Construction (ID&C).  LEED for Existing Buildings (EB) is included in the LEED Reference Guide for Green Building Operations and Maintenance (O&M). For more information, visit the USGBC web site at http://www.usgbc.org or the GBCI at http://www.gbci.org.

AGC of America estimates that as many as 32 states are closely following California's controversial effort to implement and enforce first-time emission limits for in-use "fleets" of off-road diesel (ORD) equipment.  If these states adopt identical rules, construction companies across the nation will be forced to pay the high cost of installing aftermarket pollution controls on equipment that is currently out in the field, or face replacement and retirement as their only alternatives.  Interested states admit their goal is to reduce off-road emissions of nitrogen oxide (NOx) and fine particulate matter (PM2.5) at a much faster rate than what is required by federal "Tier 1-4 standards," which set pollution limits for newly-manufactured off-road diesel engines and fuel -- but do not mandate any reductions from existing engines.For several years, AGC of America and its California Chapters have been strongly opposing the ORD rule and pressing the California Air Resources Board for relief (click here).  At the same time, AGC is actively warning its Chapters in the other 49 states that the ORD rule could set a de facto national standard that would impose an excessive, and in some cases insurmountable, economic burden on the already struggling construction industry.Approximately 17 states have already adopted one or more of California's strict emissions standards, primarily to obtain the additional pollution reductions needed to comply with national ambient air quality standards (NAAQS).  California's ORD rule is designed to quickly and steadily reduce emissions of ozone (NOx contributes to the formation of ozone) and PM2.5.  California's effort comes at a time when the U.S. Environmental Protection Agency (EPA) has just set new and more stringent standards for both of these pollutants.In the near term, almost all 50 states have to write clean air "state implementation plans" (SIP) to show EPA how they will meet the tighter federal NAAQS for ozone and/or PM.  Approximately 19 states currently have air pollution problems similar to California (and that the ORD rule is designed to address) and, at a minimum, those states will likely need to access the regulatory tools already available to California -- including laws designed to reduce pollution from existing fleets of construction equipment.  Any state that fails to develop an "approvable" SIP can be subject to numerous federal sanctions, including emissions caps limiting economic development and the loss of federal highway transportation funds.  Unfortunately, neither scenario is promising news for the business of construction.The Clean Air Act (CAA) generally prohibits state and local governments from setting engine emission standards for off-road diesel equipment (including diesel retrofit requirements) -- a concept called federal preemption.  The statute, however, makes an exception for the state of California.  To be clear, California is the only state that has the authority to set emission standards for engines in construction equipment that are more aggressive than federal standards, including retroactive requirements.  But once California sets such standards, and the federal government approves of them, other states have the option of "opting-in" to California's program.  Any state that elects to "opt-in" to California's ORD rule must adopt, implement and enforce (and potentially amend) it exactly as dictated by California lawmakers.The environmental movement has targeted the construction industry as a major contributor of airborne pollutants and many states appear to be receptive to the concept of retroactive equipment "retrofit" requirements.  To this end, AGC has observed an increase in the number of state construction contracts for public works projects that include bid preferences and/or specifications mandating reductions in diesel emissions. (The legality of this practice is questionable and the key issue of whether or not states and localities can accomplish indirectly what they can not do directly will certainly be the subject of future litigation.)  Once California unlocks the door to broad, statewide standards for off-road diesel emissions, identical standards are likely to come pouring through it.  AGC is very concerned about the costs that these standards will impose on the construction industry.Following are answers to the most frequently asked questions about states likely to adopt California's off-road engine emission standards.  Click here to view where each state currently stands on this issue.Q1 - Which states are currently or previously in nonattainment of the PM2.5 and/or the 8-hour ozone NAAQS? In addition to California, 33 states are currently or previously in nonattainment of the PM2.5 and/or 8-hour ozone standards, and the federal government predicts that even more states will exceed the new and more stringent standards already scheduled to take effect over the next few years.  The Clean Air Act (CAA) requires the U.S. Environmental Protection Agency (EPA) to designate areas as attainment (meeting the standard), nonattainment (not meeting the standard) or unclassifiable (insufficient data to classify) after the agency sets a new national ambient air quality standard (NAAQS), or revises an existing standard.For more information on the process EPA and the states follow to designate areas as in attainment or nonattainment for the ground-level ozone standards established in 1997 and in 2008, as well as links to nonattainment area maps, log on to http://www.epa.gov/ozonedesignations/.  The designation web page on the standards established in 1997 and 2006 for fine particle pollution is online at http://www.epa.gov/pmdesignations/.  The EPA Green Book, which lists nonattainment areas for all NAAQS is online at http://www.epa.gov/oar/oaqps/greenbk/index.html.Q2 - Which states are legally qualified to adopt California's ORD rule?Based on AGC's research, almost every state is (or will be) legally qualified to adopt California's ORD rule as a result of EPA's continual process of identifying and revising federal NAAQS.  The CAA allows any state that has ever had a state implementation plan (SIP) approved by federal EPA for any nonattainment area to adopt California's stronger motor vehicle standards (Section 177); the Act further allows such states to adopt California's off-road vehicle and engine standards (Section 209(e)(2)(B)). The one exception is that the Act prohibits California and other states from adopting emission standards for new engines under 175 horsepower used in construction equipment (Section 209(e)(1)).States with air pollution problems generally have two choices when deciding how to regulate emissions from mobile sources: They can follow the federal standards or the California standards. States that seek to adopt California's ORD rule must consider the following--Non-California states must have authority under their own state law to adopt California's regulations.The CAA allows non-California states to adopt and enforce off-road emission standards "identical" to California's regulations (Section 209(e)(2)(B)). This identical-standard also explicitly requires that implementation and enforcement are identical to California's for off-road emissions (Section 209(e)(2)(B)(i)).In addition, a state choosing to adopt California's standards for off-road sources must notify the EPA administrator of its decision, although EPA has no approval role in the adoption of the state standards (Section 209(e)(2)(B)).Finally, opt-in states must provide two years of "lead time" following adoption of any of California's mobile source emission standards before such standards take effect in their own state (see Q5 below).Q3 - Which states have already expressed an interest in California's ORD rule?According to the EPA Green Book, the following states have air pollution problems similar to California's problems (i.e., they have nonattainment areas for both the 8-hour ozone and PM2.5 NAAQS) and they are likely to adopt California's ORD rule: Connecticut, Delaware, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia - plus the District of Columbia.  In addition, although Alabama and West Virginia were recently re-designated by EPA as meeting the 1997 8-hour ozone standard, these states will be (once again) in nonattainment for both the 2008 ozone and 2006 PM2.5 NAAQS once "official" designations are made under the new, more stringent standards.In recent news, diesel experts tracking the issue (such as John Deere's Joe Mastanduno, whom the April 2009 edition of Construction Equipment Distribution referenced) have specifically identified the following states as areas to watch--A group of 13 states in the Northeast, expected to adopt the regulations together;The Midwest, specifically around the Chicago area, the Great Lakes region including Wisconsin and Ohio;Texas;California boarder states;The Southeast, like Georgia and Florida; andThe Northwest, like Oregon and Washington.Q4 - Which states have already adopted one or more of California's other engine emission standards?California has taken advantage of its unique authority under the Clean Air Act and has set its own emission standards for everything from cars and SUVs to diesel trucks from lawn and garden equipment to personal watercraft.At least twelve states - Connecticut, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington - have already adopted the California emissions low-emission standards for passenger vehicles.There are a few states that are NOT on the list above that have adopted California's standards for diesel trucks, which are identical to but serve to reinforce the federal standards, like Delaware, Georgia, North Carolina, Texas - as well as Washington, DC.  And at least New York has adopted California's standards for personal watercraft, such as jet skis.In addition, at least 19 states have adopted, or are in the process of adopting, California's strict new rules to reduce greenhouse gas emissions from cars, including Arizona, Colorado, Connecticut, Florida, Illinois, Iowa, Maine, Maryland, Massachusetts, Montana, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Utah, Vermont and Washington.Q5 - What is the "lead time" requirement for California's ORD rule to take effect in other states? According to the Clean Air Act and EPA's "clarifying" regulations, California must first adopt its standards, and then other states may adopt the same standards provided that 1) the other state's rule does not take effect until two years after its adoption by that state, and 2) the rule is the same as the one ultimately authorized by EPA's waiver.Specifically, CAA Section 209(e)(2)(B) provides for a two-year period from adoption by another state of a regulation identical to a regulation for which California has obtained a waiver before the regulation may take effect in that other state.  EPA's off-road regulations, as revised on October 8, 2008, provide some clarification of the Clean Air Act provisions:(a) ... any state other than California that has plan provisions approved under Part D of Title I of the Act (42 U.S.C. 7501 to 7515) may adopt and enforce emission standards for any period for off-road engines and vehicles subject to the following requirements:(1) The state must provide notice to the Administrator that it has adopted such standards.(2) Such standards may not apply to new engines smaller than 175 horsepower that are used in farm or construction equipment or vehicles, or to new locomotives or new engines used in locomotives.(3) Such standards and implementation and enforcement must be identical, for the period concerned, to the California standards authorized by the Administrator.(4) The state must adopt such standards at least two years before the standards first take effect.(5) California must have adopted such standards two years before the standards first take effect in the state that is adopting them under this section.40 CFR § 1074.110(a) (promulgated at 73 FR 59033, at 59380)It is important to note, however, that states do not need to wait for the California standards to receive a federal preemption waiver before adopting such standards. EPA and the courts have consistently taken the position that a non-California state may adopt California standards that have not received a preemption waiver but that the state cannot enforce the rules until California wins EPA's approval.For more information on California's ORD rule and AGC's efforts, log on to AGC's web site at http://www.agc.org/carbrule.  Click here to view where each state currently stands on this issue.

On Thursday, August 13, AGC hosted a meeting of real estate and construction stakeholders to discuss the impacts of legislative and regulatory efforts to regulate U.S. greenhouse gas (GHG) emissions from stationary and mobile sources on the industry.  The meeting is the third AGC has convened with this group in the topic of climate change.AGC's CEO Steve Sandherr presented a discussion draft of guiding principles for climate change legislation for the real estate and construction industries and related groups to provide the framework for stakeholders interested in forming a coalition on this issue.  The draft document states concern that "new federal legislation and/or regulations intended to control GHG emissions could increase the cost of building operations, or otherwise deter new construction and/or the renovation of existing buildings and other facilities."In addition to identifying collective concerns with energy and climate change legislation before Congress and with regulatory efforts by the Obama Administration, the group is also working to identify recommendations for Congress to improve the bill.The U.S. House of Representatives approved the American Clean Energy and Security Act of 2009 (H.R. 2454) by a vote of 219-212 on June 26.  AGC opposed the measure due to the negative impacts the measure would have on the construction industry and thoroughly explained the Act's implications here.  The Senate is expected to consider its version this fall. For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org.

October 27 - 29, in Atlanta, GAParticipate in cutting-edge sessions to develop innovative approaches and solutions to managing training and human capital at AGC's HR Professionals Conference and Training & Development Conference, Oct. 27-29 in Atlanta. Register and learn more at www.agc.org/hr_td.Register for this year's combined conferences by October 1 for only $495 (AGC members and Chapter staff only). Attendees are allowed to attend any of the HR or T&D focused tracks and joint sessions to customize their experience.

Few industries rely on effective leadership for success more than the construction industry. With the overwhelming number of activities on any given jobsite, it takes astute leadership to pull them all together. Without it, project safety, profitability and company reputation are at risk. Attending AGC's Leadership in Construction Workshop will help you enhance your individual skills and teach you how to become the most effective leader possible.COURSE DATE & LOCATION                                          November 11-13, 2009 | Cincinnati, OH                          APPLICATION DEADLINEOctober 23, 2009Learn more at www.agc.org/leadershipworkshop.

Save the date for the next AGC Building Contractors Conference January 20-23, 2010 in San Juan, Puerto Rico!  Registration and more information about the meeting will be posted to www.agc.org/BCC as it becomes available.

San Diego, California - September 29-30 - Manchester Grand Hyatt Many negotiators fail to realize that successful negotiating is a talent - a talent that can be improved by learning the right skills. Negotiating doesn't mean tricks and intimidation. The ability to successfully negotiate is a skill that can be learned. In this two-day course, participants will gain valuable working knowledge of negotiating and listening and how it will benefit their relationships, both personally and professionally. Learn more!