AGC Tells FHWA to Encourage Use of CMAQ Funds for Diesel Retrofits

The Federal Highway Administration (FHWA) and US DOT continue to produce regulations and guidance in response to directives and changes that were contained in the MAP-21 transportation reauthorization legislation. The latest from FHWA is guidance for implementation of changes made in the Congestion Mitigation and Air Quality (CMAQ) program which is a special category of highway funding to be used for transportation projects that improve air quality in areas that are not in compliance with air standards. AGC was successful in MAP-21 in expanding the eligibility for the use of CMAQ funds to assist contractors in retrofitting their off road construction equipment in air non-attainment areas when required by the contract and addressed this issue in comments to FHWA on the proposed guidance. AGC’s comments suggested that the guidance encourage states to use a greater share of CMAQ funds for diesel retrofits because they have proven to be effective in reducing particulate matter (PM 2.5) emissions. The comments objected to the directive encouraging states to seek a higher amount of as much as a 50-50 split with the private sector in paying for the retrofits. AGC pointed out that this places a higher financial burden on private sector contractors in accomplishing what is largely a public benefit and pointing out that diesel retrofits can have an adverse impact on contractors because they may invalidate manufacturer’s warranty and undermine the machine’s efficiency. AGC also encouraged FHWA to direct that states take credit for the air quality improvements from the retrofits as part of their transportation air quality conformity process. This is an important recommendation because taking credit for these air quality improvements can help states avert construction bans and/or threats to their highway funding.